Friday, April 3, 2009

A Trillion to the IMF? Who the Hell Are the IMF? Did Anybody Vote for This?

A trillion dollars has been allocated by the G20 countries to the IMF. (Trillion is definitely the new billion.) Can somebody tell me what it means?

The G20 nations will inject $1 trillion into the world economy in an effort to curb the global financial crisis, British Prime Minister Gordon Brown announced Thursday as the group's summit concluded.


The package includes $500 billion for the IMF, plus $250 billion special drawing rights from the reserve currency for member countries of the IMF and $250 billion to boost trade, Brown said.

Canadian officials have said that Canada will be providing an additional $10 billion US for emergency IMF assistance and is putting $200 million into the trade fund.

Brown said the summit represented a "day the world came together to fight back against the recession."

"Today the largest countries in the world have agreed to a global plan for recovery and reform," he said. "I think the new world order is emerging and with it the foundations of a new and progressive era of international co-operation."

We've been beaten into the ground with bailouts and stimulus, that it is hard to grasp what this means. Billions and trillions are being advocated at a dizzying pace lately, with no accountability. Now this. Who is the IMF? (OK, I have minimal knowledge.) Why is Canada sending $10 billion there? Can we have an appropriations committee? No? Well, I give up then.

It makes me feel like how I felt with hedge funds and derivatives. You're trusting that these experts know what they're doing. Turns out they didn't know what they were doing. The IMF is some giant monolith and I have no faith that they know what they're doing. At least national pork projects are overseen by Canadians, and used in Canada. Adding another layer with an international group seems beyond ridiculous.

Hat tip: Pat

1 comment:

  1. I don't know but it will certainly fuel the conspiracy theorists out there who believe that a socialist world order is on the verge of taking us over. I don't buy into this grand conspiracy but I have to admit this latest move is rather disturbing.