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March 3rd, 2012 
FAKE NEWS for the Zionist agenda 
Christine Lagarde
Nelson Ching/Bloomberg
Christine Lagarde, managing director of the International Monetary Fund (IMF), attends the International Finance Forum (IFF) 2011 Annual Conference in Beijing.
Christine Lagarde, managing director of the International Monetary Fund (IMF), attends the International Finance Forum (IFF) 2011 Annual Conference in Beijing. Photographer: Nelson Ching/Bloomberg
Jan. 18 (Bloomberg) — The International Monetary Fund is proposing to raise its lending capacity by $500 billion to insulate the global economy against any worsening of Europe’s debt crisis, according to a person familiar with the talks.
Sara Eisen reports on the IMF and other top news about the European debt crisis on Bloomberg Television’s “In the Loop.” (Source: Bloomberg)
IMF Managing Director Christine Lagarde
Michele Tantussi/Bloomberg
Christine Lagarde, managing director of the International Monetary Fund (IMF).
Christine Lagarde, managing director of the International Monetary Fund (IMF). Photographer: Michele Tantussi/Bloomberg
The International Monetary Fund is
proposing to raise its lending capacity by as much as $500
billion to insulate the global economy against any worsening of
Europe’s debt crisis.
The Washington-based lender is aiming to increase its
resources after identifying a potential need for $1 trillion in
financing in coming years, an IMF spokesman said in a statement.
The IMF is studying options and will not comment further until
it has consulted its members, the fund said. To incorporate a
cash buffer, the lender is seeking a total $600 billion.
IMF Managing Director Christine Lagarde said yesterday her
staff is looking at ways to expand the fund’s war-chest, which
currently has about $385 billion available. While euro-region
nations have already pledged to contribute 150 billion euros
($192 billion), the U.S. has said it has no plans to make new
bilateral loans and leaders of Group of 20 nations ended last
year at odds over the issue.
“The biggest challenge is to respond to the crisis in an
adequate manner and many executive directors stressed the
necessity and urgency of collective efforts to contain the debt
crisis in the euro area and protect economies around the
world,” Lagarde said yesterday in an e-mailed statement
following a discussion among her institution’s board of
directors.
U.S., Canada
“Europe has the capacity to solve its problems,”
the U.S. Treasury said today, reiterating its position.
“The IMF cannot substitute for a robust euro area firewall
We have told our international partners that we have no
intention to seek additional resources for the IMF.”
In Ottawa, Bank of Canada Governor Mark Carney told
reporters that additional resources “would need to come from
Europe.”
“If it makes sense, and that is an open question, but if
it makes sense to enhance the resources of the IMF, the
principal focus, it would seem, should be on dealing with the
fallout of the European crisis for innocent by-standers
which might be affected,” Carney said. “This is a conversation
that is still to be had.”
Mexico Meeting
The IMF is pushing China, Brazil, Russia, India, Japan and
oil-exporting nations to be the top contributors, according to a
G-20 official, who spoke on condition of anonymity because the
talks are private. The fund wants a deal struck at the Feb. 25-
26 meeting of G-20 finance ministers and central bankers in
Mexico City, the official said.
The push for more money by the IMF may extend this month’s
rally in investor sentiment toward European debt markets on
speculation the region is enjoying a respite from its two-year
debt turmoil and that any euro-area recession may be shallow.
The euro rose 0.8 percent to $1.2833 as of 2:50 p.m. in
London.
In a sign the crisis may have longer to run, the World Bank
cut its global growth forecast yesterday by the most in three
years to 2.5 percent this year and said the euro area may
contract 0.3 percent. Euro-area countries also need to repay 157
billion euros of maturing debt this quarter, according to UBS AG
calculations.
Talks This Week
Lagarde’s proposal is set to be discussed by G-20 deputy
finance officials, scheduled to meet this week in Mexico. At a
November summit in the French resort of Cannes, G-20 leaders
balked at writing fresh checks for the IMF, demanding that
Europe’s governments do more to fix their crisis while saying
they would ensure the IMF “continues to have resources to play
its systemic role.”
Russia’s government won’t decide on any contribution before
March presidential elections, First Deputy Prime Minister Igor Shuvalov said in an interview in Moscow today.
Greater support for the IMF also attracted controversy
within Europe. Germany’s Bundesbank coupled its 41.5 billion-
euro input to a promise that the aid not be earmarked for
Europe. Such recycling would violate euro rules that bar central
banks from financing government deficits. As a result, the euro
area will lend to the IMF’s general resources, not to a special
crisis fund.
Options for raising the IMF’s resources include opening a
trust fund or not rolling back a 2009 increase. Officials have
also discussed increasing the amount of the fund’s Special
Drawing Rights.
Emerging-market countries may try to twin the call for help
with a push to increase their clout at the IMF. Such nations,
which are growing twice as fast as their developed counterparts,
say that their voting power doesn’t reflect their weight in the
global economy and they want to end the tradition of selecting a
European to head the institution.
To contact the reporter on this story:
Simon Kennedy in London at
[email protected]
To contact the editor responsible for this story:
Craig Stirling at [email protected]
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