EXOGEN February 10, 2015
IMF weighs dropping U.S. veto over delayed reforms: sources
By Anna Yukhananov and Lidia Kelly, Reuters February 10, 2015
WASHINGTON/MOSCOW (Reuters) - The IMF's board last month discussed two options for moving forward on voting reforms without the United States, including a proposal under which Washington would lose its veto power at the global lender, according to three sources familiar with the proposals.
The sources, who have seen an IMF staff paper laying out the options, said the plan would ask the United States to temporarily give up its controlling share of IMF votes, amid growing frustration with U.S. foot-dragging on reforms meant to give emerging markets more say at the institution.
Russia and Brazil have pushed for this idea publicly over the past year, and Russian Finance Minister Anton Siluanov on Tuesday said it could encourage the U.S. Congress to act.
The IMF's member countries agreed in 2010 to reform the institution's voting rights, but the Obama administration has so far been unable to persuade Republicans in Congress to pass the necessary funding changes.
The 2010 reforms would double the fund's resources and increase the voting power of countries like China and India. They would also reduce the dominance of Western Europe on the fund's 24-member board.
Under one proposal, known as "de-linking," the IMF board would detach the doubling of resources from the changes to the board, though the United States would have to agree to do so.
"In our view the de-linking would be the most logical," Siluanov told reporters on the sidelines of a Group of 20 meeting in Istanbul, though he admitted the United States has asked countries to wait another six months as it pushes for congressional approval.
The U.S. Treasury said it is working "intensively" to get Congress to pass the 2010 reforms.
The second proposal, which does not require U.S. approval, would raise the voting rights of some emerging countries under an 'ad hoc' increase, without touching U.S. veto power.
But countries like China would only get a small bump in their shares. This option would also not resolve the IMF's financial crunch, as it increasingly relies on temporary arrangements approved during the height of the global financial crisis to fund major loan programs in countries like Greece and Ukraine.
The board has not yet decided which of the two options to pursue, and will discuss the issue further during the April meetings of the IMF and World Bank before settling on a plan, according to people who were not authorized to speak publicly.
(Reporting by Anna Yukhananov in Washington and Lidia Kelly in Moscow; Additional reporting by Dasha Afanasieva in Istanbul; Editing by James Dalgleish)
EXOGEN : THE WORLD IS FED UP WITH THE UNITED STATES
THESE ARE THE SAME TYPE OF DELAY TACTICS THE USA HAS BEEN USING IN IRAQ
Landons Nana: Posted Today, 01:38 PM Copied From Twitter:
@THE_TNT_TEAM: Breaking news President ratifies Budget Law of 2015
http://t.co/AgvbEmxvym Should be in the Gazette Wednesday. #wearethepeople
Yes it is confirmed.
@JCR3758: Word of advice. Wait till after you exchange & get home to start dancing & jumping up & down. Don't get locked up (in a sanitarium) post RV
Landons Nana: sczin11 BASED ON ALL THE REPORTS, RELEASES, AND ANNOUNCEMENTS, WE ARE LED TO BELIEVE THAT THE IRAQI DINAR, SHOULD BE SUPPORTED WITH EASE, BY THE CENTRAL BANK OF IRAQ, ( CBI ), AND FURTHER REPORTS INDICATE THE VALUE OF THE CURRENCY SHOULD BE ONE OF THE STRONGEST, IF NOT THE MOST POWERFUL CURRENCY IN THE WORLD!
THE COST OF EXCHANGING THE OLD DINAR, ( WHAT WE OWN) WITH THE NEW VALUE PAIRED TO WHATEVER CURRENCY OR COMMODITY THEY CHOOSE, IS ONE OF SIGNIFICANT LEVELS...IT WOULD POSSIBLY BEHOOVE THE CBI TO PAY AS LITTLE AS POSSIBLE, THUS COMING UP WITH A LOWER INITIAL EXCHANGE RATE...CORRECT? I SAY NOT!
IF THE CBI COMES OUT WITH A LOWER RATE THEN THE INTERNATIONAL MARKET WARRANTS AND DEMANDS, WHAT KIND OF CONFIDENCE DOES THAT SHOW THE WORLD?
NEXT, IF THE RATE CAME OUT LOW, HOW LONG WOULD IT TAKE THE MARKET TO ADJUST TO THE TRUE VALUE...BEFORE YOU COULD GET TO THE BANK, THE RATE WILL HAVE CHANGED...
ONCE THEY RELEASE THE "NEW RATE", AT WHATEVER LEVEL THAT IS, IT IMMEDIATELY BEGINS TRADING ON THE FOREX CURRENCY EXCHANGE... AND AS OF A FEW DAYS AGO, PRIME MINISTER ABADI HAS CLEARLY STATED TO THE WORLD, FROM GERMANY, "IRAQ IS OPEN FOR BUSINESS".
[Sallypuff] Wal-Mart has Depends on sale. I wonder if they know something we don't?
Sparkyone: BIX WEIR~A final check list for everyone
A FINAL CHECKLIST FOR EVERYONE
hint~hint...the DERIVATIVE BUBBLE!!
If you don't know by now, we are right on the brink of EVERYTHING falling apart and it is long past time for you to be prepared. The amount of preparation you will need depends on the severity of the monetary crash but everything is pointing to long, slow and painful recovery.
I am posting this article for those who have no idea what I'm talking about, and have NOT made the appropriate arrangements yet.
Of the 3 Scenarios I present, I believe the most likely is #3: The Popping of the Derivative Bubble. Greece is forcing the issue and all of Europe is about to experience the problems associated with Counter Party Risk and the connectivity of our financial infrastructure.
So stay close to home and stock up for a bumpy ride on this Road.
BOOK UPDATE: I am racing against the clock to get this book out before the S#*T HITS THE FAN but it is proving harder to finish than expected. Totally my fault as I thought I was finished months ago...I guess someone higher up had other plans :)
Watch for it next week though as the topics I cover and the information provided will prove very valuable before, during and after the Crash.
May the Road you choose be the Right Road.
Bix Weir www.RoadtoRoota.com
Kelly123 » February 10th, 2015, I remember some articles in the past referring to the "supplemental budget" as something to have in place for when the oil prices started going back up. So the budget was set at say, 56 a barrel, and the supplement budget was made for when they went up again. Can anyone address this ?????????????
wonlady JUST WONDERING..COULD THIS "SUPPLEMENT" BUDGET BE THE "RIDER" FRANK WAS TALKING ABOUT? MAYBE THEY ARE PUTTING THE "FINAL TOUCHES" IN THERE??
s41755k » February 10th, 2015, 3:21 pm
I have a question in a comment but first I like to Thank Frank, Delta, Eagle 1, WS and all who bring forth such a wealth of info to KTFA it truly is a Blessing in preparing us all to what lies ahead. Thank you again
The CC last night was awesome to say the least but the Question/comment I have...I totally agree on the concept of Iraq coming out at a lower rate that Frank and Delta suggest and it makes total sense especially when you review what happen to Kuwaiti in the 90's.
But today is 2015. With HFT (high frequencies trading) and "Trading (circuit) breaker" in place can history be repeated... or are their other condition that are in the markets to control what happen to Kuwait to stop this type of movement in the currencies market?
If so, does this need to be considered or has it already. Please keep in mind I have no ideal what I am talking about just one of many random thoughts that go through my head. all IMO Blessing
[wushock92] Two engineers were standing at the base of a flagpole, looking at its top. A woman walked by and asked what they were doing. "We're supposed to find the height of this flagpole," said Sven, "but we don't have a ladder."
The woman took a wrench from her purse, loosened a couple of bolts, and laid the pole down on the ground. Then she took a tape measure from her pocketbook, took a measurement, announced, "Twenty one feet, six inches," and walked away.
One engineer shook his head and laughed, "A lot of good that does us. We ask for the height and she gives us the length!"
Both engineers have since quit their engineering jobs and are currently serving in the United States Congress.