The International Monetary Fund has “enhanced” emergency lending windows in an announcement today (the decision was made on November 21, 2011). This decision allows a member country to now fund 500% of its obligated quota. As explained below, this one action will be able to drain our nation’s wealth overnight into a plan to save the European Union but will effectively bankrupt us without any approval or oversight by Congress.
The Executive Board of the International Monetary Fund (IMF) approved on November 21 a set of reforms designed to bolster the flexibility and scope of the Fund’s lending toolkit to provide liquidity and emergency assistance more effectively to the Fund’s global membership.
The United States’ obligation to fund the IMF is 17.71%. At 500% of this obligation, the United States can now be responsible for 88.55% of the European Union bailout (0.1771 x 5 = 88.55%). With the European derivatives valued at several hundred trillion dollars, this “enhancement” will destroy the United States’ banks and economy.
Our IMF quota is 42,122.40 million SDRs:
| II. General Resources Account: | SDR Million | %Quota |
| Quota | 42,122.40 | 100.00 |
An SDR is the precursor to a basket of currencies to replace the US dollar.
Special Drawing Rights (SDRs)
September 13, 2011
The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. Its value is based on a basket of four key international currencies, and SDRs can be exchanged for freely usable currencies. With a general SDR allocation that took effect on August 28 and a special allocation on September 9, 2009, the amount of SDRs increased from SDR 21.4 billion to around SDR 204 billion (equivalent to about $328.3 billion, converted using the rate of August 31, 2011).
The role of the SDR
The SDR was created by the IMF in 1969 to support the Bretton Woods fixed exchange rate system. A country participating in this system needed official reserves—government or central bank holdings of gold and widely accepted foreign currencies—that could be used to purchase the domestic currency in foreign exchange markets, as required to maintain its exchange rate. But the international supply of two key reserve assets—gold and the U.S. dollar—proved inadequate for supporting the expansion of world trade and financial development that was taking place. Therefore, the international community decided to create a new international reserve asset under the auspices of the IMF.
The setup started last month:
Bank Of America Dumps $75 Trillion In Derivatives On U.S. Taxpayers With Federal Approval
Bloomberg reports that Bank of America (BAC) has shifted about $22 trillion worth of derivative obligations from Merrill Lynch and the BAC holding company to the FDIC insured retail deposit division. Along with this information came the revelation that the FDIC insured unit was already stuffed with $53 trillion worth of these potentially toxic obligations, making a total of $75 trillion.
It then continued with the issuance of fiat securities by J.P. Morgan:
J.P. Morgan Chase & Co. to Issue Fiat Securities
Not to be outdone by the Federal Reserve, J.P. Morgan Chase & Co. will issue commercial mortgage-backed securities (CMBS) backed by defaulted loans. Fiat securities may be the only method that J. P. Morgan can use to postpone the inevitable bankruptcy coming from their exposure to the EU derivative collapse.
But today’s announcement is the literal final nail in the coffin of the US dollar and our future. This is how redistribution of our wealth goes not to the socially disadvantaged occupiers but to the European elite who have orchestrated the greatest theft in the history of the world.
David DeGerolamo
IMF Enhances Liquidity and Emergency Lending Windows
The Precautionary and Liquidity Line:
- Qualification criteria remain the same as under the PCL. A member needs to be assessed as having sound economic fundamentals and institutional policy frameworks, having a track record of implementing sound policies, and remaining committed to maintaining such policies in the future. A member can seek support when it has either a potential or actual balance of payments need at the time of approval of the arrangement (rather than only a potential need, as was required under the PCL).
- Can be used as a liquidity window allowing six-month arrangements to meet short-term balance of payments needs. Access under a six-month arrangement would not exceed 250 percent of a member’s quota, which could be augmented to a maximum of 500 percent in exceptional circumstances where the member faces a balance of payments need that is of a short-term nature and results from exogenous shocks, including from heightened regional or global economic stress conditions.
- Can also be used under a 12 to 24-month arrangement with maximum access upon approval equal to 500 percent of a member’s quota for the first year and up to 1000 percent of quota for the second year (the latter of which could also be brought forward to the first year where needed, following a Board review). As under the PCL, arrangements of these durations include Executive Board reviews every six months.
Obama Progressivism et al. = Cloward-Piven = economic/social devastation
Luke 8:17 (NIV)
17 For there is nothing hidden that will not be disclosed,
and nothing concealed that will not be known or brought out into the open.
Psalm 109:8 ~
“Let his days be few and brief; and let others step forward to replace him.”
As Thomas Jefferson said
“When injustice becomes law, resistance becomes duty.”
“Silence in the face of evil is itself evil:
God will not hold us guiltless.
Not to speak is to speak.
Not to act is to act.”
Dietrich Bonhoeffer
“I am concerned for the security of our great nation,
not so much because of any threat from without,
but because of the insidious forces working from within.”
General Douglas MacArthur
If the representatives of the people betray their constituents,
there is then no recourse left but in the exertion of
that original right of self-defense…
Alexander Hamilton
“Silence in the face of evil is itself evil:
God will not hold us guiltless.
Not to speak is to speak.
Not to act is to act.”
Dietrich Bonhoeffer
This is laser etched on the lower receiver of my AR-15. Everyone should read Bonhoeffer to understand the consequences of not fighting evil.
We’re screwed. Again!
“A Prudent man sees danger and takes refuge, but the simple keep going and suffer for it”. Proverbs 22:3