I listened to the broadcast again. http://video.pbs.org/video/2036923517 The statement was that the U.S. funds the IMF by 17%. His accent was so heavy I thought he said 70%. However, he went on to say that the new IMF chief is going to have a difficult time getting more money from the U.S.
I read the charter for the IMF. It states that weak countries are bailed out by a special fund supported by member countries. Most resources for IMF loans are provided by member countries, primarily through their payment of quotas. Since early 2009, the IMF has signed a number of new bilateral loan and note purchase agreements to bolster its capacity to support member countries during the global economic crisis. Multilateral borrowing arrangements provide a further backstop to IMF resources. Concessional lending and debt relief for low-income countries are financed through separate contribution-based trust funds. I strongly think that this special fund is what will be asked of the U.S. to support by the new IMF chief, Christine Lagarde. Apparently this is the way Germany and France will provide funds to Greece, not through the member contributions by member countries to the IMF. If you roll in Spain, Italy, Portugal, etc. who are asking for bailouts, the amounts that will be required will be staggering. In the interview I mentioned above, Simon Johnson says that these countries collectively are "too big to save". The second problem is that European and especially French banks were allowed to hold only 3% in reserve and many U.S. money market funds bought their loan portfolios. This does not sound good to me. ----- Original Message ----- Fr om: "Adam Buckland" <[email protected]> To: "ProFox Email List" <[email protected]> Sent: Monday, July 04, 2011 11:21 AM Subject: RE: [OT] US to bail Greece? > Well it's wrong whoever said it... > > http://www.brettonwoodsproject.org/art-563643 > > > > -----Original Message----- > From: [email protected] [mailto:[email protected]] On > Behalf Of MB Software Solutions,LLC > Sent: 04 July 2011 16:02 > To: ProFox Email List > Subject: Re: [OT] US to bail Greece? > > On 7/1/2011 11:17 PM, Nicholas Geti wrote: >> On Lehr News tonight the interviewee (don't recall his name) said that > >> the new woman in charge of the IMF will be asking the U.S. to help >> bail out Greece. The way this works is that the IMF is funded 70% by >> the U.S. So we would then have to chip in 70% of the $146 billion >> being asked for by the Greeks. >> >> Absolutely insane. > > > Crazy. > [excessive quoting removed by server] _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/56BFBC0FEA294967B17615A0AF625B78@reddingeusi5h4 ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
