Daily Bail
October 5, 2011
New threat from Europe using U.S. taxpayer cash.
Pause to remember that U.S. taxpayers fund almost 20% of the IMF war chest, which could now be used to buy up the debt of weak Euozone members, a move that would end in massive losses as we enter 2012 and bond yields soar in Italy and Spain as it becomes clear that neither country will meet deficit targets, just like Greece. Since when does the IMF’s charter allow for government bond purchases?
LONDON — Antonio Borges, Europe director at the International Monetary Fund, said Wednesday that the IMF could cooperate with the euro zone by buying up distressed government bonds, according to media reports. The fund could use its own resources to help restore confidence in the debt markets of Italy and Spain, but there are no immediate proposals on the table, Borges said, according to a Bloomberg report. The Financial Times reported that Borges also called for swift action on recapitalizing European banks, warning that a failure to restore confidence in the sector could lead to another credit crunch at a time when the economy is already slowing.
The Emergency Election Sale is now live! Get 30% to 60% off our most popular products today!