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Current Events => Economics => Topic started by: BlueStateSaint on April 03, 2012, 02:35:57 PM

Title: IMF chief calls on US for more cash
Post by: BlueStateSaint on April 03, 2012, 02:35:57 PM
Granted, it's The Times of India, but it's probably happening.  And the Obamessiah will comply, unleashing Helicopter Ben to keep the printing presses running 24/7.

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IMF chief calls on US for more cash

AFP | Apr 3, 2012, 09.12PM IST


WASHINGTON: IMF managing director Christine Lagarde implored the United States to help back-stop debt-ridden European countries Tuesday, wading neck-deep into bubbling US political waters.

Speaking in the US capital, Lagarde said the 187-nation International Monetary Fund needed more firepower to tackle financial crises raging around the globe, arguing it was in the US interest to pitch in and help Europe.

"Americans might ask themselves: why should what happens in the rest of the world concern us? Don't we have our own problems?" she said, according to prepared remarks.

"The answer is simple: In today's world, we cannot afford the luxury of staying in our own mental backyards."

"If the European economy falters, the American recovery and American jobs would be in jeopardy. So America has a large stake in how Europe fare -- and how the world fares."

Thing is, in the last paragraph above, she's right.  But, it would be a lot better going through the pain now, rather than having no choice but to go through the pain--greatly magnified--later.

The rest is at:  http://timesofindia.indiatimes.com/business/international-business/IMF-chief-calls-on-US-for-more-cash/articleshow/12522131.cms
Title: Re: IMF chief calls on US for more cash
Post by: rich_t on April 03, 2012, 03:00:23 PM
No problem.  Just fire up the printing presses.
Title: Re: IMF chief calls on US for more cash
Post by: obumazombie on April 03, 2012, 03:20:32 PM
IMF, international banksters.
Title: Re: IMF chief calls on US for more cash
Post by: Zeus on April 03, 2012, 03:24:08 PM
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The 14th General Review of Quotas will:
double quotas from approximately SDR 238.4 billion to approximately SDR 476.8 billion, (about US$767 billion at current exchange rates).

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How member countries’ quotas are determined

When a country joins the IMF, it is assigned an initial quota in the same range as the quotas of existing members that are broadly comparable in economic size and characteristics. The IMF uses a quota formula to guide the assessment of a member’s relative position.

The current quota formula is a weighted average of GDP (weight of 50 percent), openness (30 percent), economic variability (15 percent), and international reserves (5 percent). For this purpose, GDP is measured as a blend of GDP based on market exchange rates (weight of 60 percent) and on PPP exchange rates (40 percent). The formula also includes a “compression factor” that reduces the dispersion in calculated quota shares across members.

Quotas are denominated in Special Drawing Rights (SDRs), the IMF’s unit of account. The largest member of the IMF is the United States, with a current quota of SDR 42.1 billion (about $68 billion), and the smallest member is Tuvalu, with a current quota of SDR 1.8 million (about $2.9 million)