We might be saying goodbye to more of our money for the failing socialist European nations. Tim Geithner, ever the Keynesian, is pushing the IMF to boost its firewall at the Davos World Economic Forum. The U.S. contributes about 20% to the IMF fund [Check this out].
International Monetary Fund chief Christine Lagarde led a global push yesterday for the euro-zone to boost its financial firewall, saying “if it is big enough it will not get used.”
I don’t know why they wouldn’t use it – hard to put faith in that statement.
..Deflation, particularly the dreaded debt deflation that Central Banks fear, is fast spreading throughout the financial system as the European banking system collapses.
Indeed, the EU, in its current form, is most certainly in its final chapter as both the political environment and market conditions have rendered all proposed “solutions” to the crisis moot.
To wit, the most recent proposals from EU leaders are:
1) To draft new budgetary requirements for EU members.
2) To move the launch of the Emergency Stability Mechanism (ESM) one year ahead of its original launch date to July 2012.
3) To send the IMF 200 billion Euros to use as aid in dealing with the EU Crisis
The media hailed these proposals as a bold step towards solving the current EU Crisis. However political and market realities show all of these proposals to be absurd, if not impossible… Read more: Zerohedge