IMF may run out of cash in six months

Generali

New_Gold_Dream wrote: »

It will borrow money from the members, might issue bonds.

Which members? Most Governments are dipping in to surpluses (in a couple of cases) or running deficits (in most cases).

If resource rich countries want the Chinese to bail them out it will be at the cost of preferential access to their resource rich assets. If resource poor countries want China to bail them out then it will be at the cost of preferential access to markets or possibly just not getting the cash at all.

Cleaver

fc123 wrote: »

It's well written gibberish though and nicely punctuated.

Thank's.

(one for the punctuation purists)

zarazara

let the printing press roll! were doomed! doomed!

Generali

New_Gold_Dream wrote: »

No idea just making it all up as i go along, unfortunately you know what you are talking about, hence my embarrassment.

One of the next problems it seems to me is that Governments can't borrow all that they would like.

Japan's Government debt is 170% of GDP. If their interest rates went back to normal - say 5% - they'd be paying 8.5% of GDP in interest each year.

Almost everyone is trying to run Japan-style fiscal deficits. I don't think the money is there for them to be able to do it.

We've never tried a system where everyone in the world prints money simultaneously so the truth is, nobody really knows what will happen. My feeling is that it could be very bad indeed.