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can the imf afford to bail "everyone" out
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iinvestor
Posts: 70 Forumite
some experts are saying that Japan, US, UK France could all need a bailout over the next 10 -15 years as their spending is out of control.
1) suppose this were to happen; could the imf afford to bail them all out considering the US defecit is ONE TRILLION alone?
how would this work in practice?
2) UK got bailed out by the IMF in 1976 what was that like?
cheers
1) suppose this were to happen; could the imf afford to bail them all out considering the US defecit is ONE TRILLION alone?
how would this work in practice?
2) UK got bailed out by the IMF in 1976 what was that like?
cheers
0
Comments
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Where does the IMF get their "money" from?
In spain, for example, the government bailed out spanish banks.
The government then needed money.
So did the ECB/IMF lend them their own money?
No. They borrowed it from italy then lent it to the banks that had just been bailed out at zero percent and the bank then lent it to the spanish government..
The spanish government then used some of this money to lend to italy.
Taxes were increased and services cut in both countries to pay back the loans.
You coudn't make this 5h1t up.
It actually happened like that.
And these clowns and crooks are supposed to come to the resue?0 -
The I.M.F. itself does not "bail out" nations.
It organises and arranges Loans, that are funded by the members.
The so called I.M.F. bailout of 1976 was in fact a Loan from that organisation, that came with strict conditions. It was in fact the U.S. Government who actually organised the Loan, but under the auspices of the I.M.F., which made it much easier politically and much easier for the strict conditions to be demanded.'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
some experts are saying that Japan, US, UK France could all need a bailout over the next 10 -15 years as their spending is out of control.
1) suppose this were to happen; could the imf afford to bail them all out considering the US defecit is ONE TRILLION alone?
how would this work in practice?
2) UK got bailed out by the IMF in 1976 what was that like?
cheers
I am pretty sure that the UK didn't really need that loan in the end.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
I am pretty sure that the UK didn't really need that loan in the end.
Did have to make severe cuts to public expenditure to meet the loan conditions though.
http://www.nationalarchives.gov.uk/cabinetpapers/themes/imf-crisis.htm0
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