IMF

I do not believe that the IMF can create a new plan above its existing unallocated money without new commitments from its members. The EU is effectively out. The US will struggle to approve anything. China, Russia, and Brazil are not necessarily in position to increase their commitments as they all have domestic problems. Japan and the UK just keep hoping the bond vigilantes continue to leave them alone.

The IMF may borrow from someone, but not to get leverage but because their members are reluctant to fund existing commitments!  The IMF is going to need money for existing plans. Countries aren’t going to be happy to issue bonds so that they can give the IMF money.

This is all circular and that circularity is coming back to haunt those people desperately trying to come up with new ways to extend and pretend.

How much has France committed to but not paid for? Has anyone added up their unfounded liabilities to EFSF, IMF, EU, EIB, Dexia?  I’m guessing the number is meaningful and that I have missed potential commitments.