IMF Warns of Global Depression If Governments Don’t Pay Up

January 24, 2012 06:43

She never mentioned Germany and the US by name, but those were her prime targets.  “It is about avoiding a 1930s moment,” she said at the German Council of Foreign Affairs in Berlin, “a moment, ultimately, leading to a downward spiral that could engulf the entire world.” – Testosterone Pit


 The Art Of Extortion: Now At The IMF

By Wolf Richter


“Now Christine Lagarde, managing director of the IMF, has stepped into the extortion racket herself and threatened that there would be another Great Depression—the red line on the financial threat-o-meter—if certain countries and their taxpayers didn’t fork over more money.


But Monday, Lagarde made clear what she wanted:


– €500 billion in mostly German taxpayer money to double the size of the future bailout fund, the ESM, to €1 trillion, so that it would be large enough to bail out Italy and Spain. Their insolvency “would have disastrous implications for systemic stability,” she threatened. So, pay up German taxpayers.


– $500 billion in taxpayer money from around the world, specifically from the US, Japan, and Germany, the three largest contributors to the IMF, to double its bailout lending power to $1 trillion.”



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