35 Burst results for "IMF"
AP News Radio
'Crunch' time in debt ceiling talks, as McCarthy and Biden reach for a deal with deadline looming
"The International Monetary Fund's chief is comparing the standoff over America's looming default deadline to something out of a fairytale. Think Cinderella. Having to leave the ball exactly at midnight. And IMF managing director kristalina Gregg Eva says it's now the 12 hour. So before our cartage turns into a pumpkin, could we please get this soft? Gorgie Ava says the US Treasury market is the global financial systems anchor. The world economy, the ship on which we all travel is in choppy and even worse uncharted waters. Which would inevitably lead to contraction in both the U.S. and world economies. That would come as a shock upon shock upon shock. A self inflicted wound for economy still recovering from the pandemic and dealing with the Russian invasion of Ukraine. Washington.
AP News Radio
IMF says inflation to slow growth across Mideast this year
"The International Monetary Fund says inflation will dampen growth across the Middle East this year. Economies across the Middle East and Central Asia will likely slow this year as persistently high inflation and rising interest rates bite into their post pandemic gains. The IMF's regional economic outlook blames in part rising energy costs, as well as elevated food prices for the estimated slower growth, the report says that while oil dependent economies of the gulf Arab states and others in the region have reaped the benefits of elevated crude prices, other countries such as Pakistan have seen growth collapse as economic woes worsened. I'm Charles De Ledesma
The Hugh Hewitt Show: Highly Concentrated
Pakistan's Economy on the Brink of Collapse
"There is a Wall Street Journal editorial. One more, one more international, but this came to me from news items by John Ellis this morning. It's my early warning system for international crises. It's the morning E newsletter with the news items that happen from all around the world. All of Ellis sources, Pakistan has reached an inflection point. I didn't know this. Food inflation is at a record high of 47%. Overall inflation hovered around 35% through March and April. Earlier this month, the country's Central Bank raised interest rates to 21%. A country that not too long ago exported wheat is now an importer thanks to last year's floods. Fuel prices have soared to unimaginable highs, industry chiefs have expressed worry that curbs on imports and withdrawal of subsidies for an electricity. Necessitated by Pakistan's dwindling foreign exchange reserves, amid conditions demanded by the IMF before a rescue package can be implemented, are threatening to bring industrial production to a halt.
Bitcoin Audible
IMF Unveils New Global Currency "UMU" by Tyler Durden
"INF unveils new global currency, known as the universal monetary unit to quote transform the world economy. Written by Tyler durden a new global currency just launched, but 99% of the global population has no idea what just happened. The universal monetary unit, also known as unicorn, is an international Central Bank digital currency that has been designed to work in conjunction with all existing national currencies. This should set off alarm bells for all of us, because the widespread adoption of a new global currency, quote unquote, would be a giant step forward for the globalist agenda. The IMF did not create this new currency, but it was unveiled at a major IMF gathering earlier this year. Today, at the International Monetary Fund spring meetings 2023, the digital currency monetary authority D.C. MA announced their official launch of an international Central Bank digital currency or CBDC that strengthens the monetary sovereignty of participating central banks and complies with the recent crypto assets policy recommendations proposed by the IMF. Universal monetary unit symbolized as ANSI character um is legally a money commodity can transact in any legal Tinder settlement currency and functions like a CBDC to enforce banking regulations and to protect the financial integrity of the international banking system. As the press release quoted above indicates, this new universal monetary unit was created by the digital currency monetary authority. So who in the world is the digital currency monetary authority? Honestly, I had no idea until I started doing research for this article. The press release says that the organization consists of sovereign states, central banks, commercial and retail banks, and other financial institutions.
AP News Radio
IMF: Prolonged high inflation dims outlook for world economy
"The International Monetary Fund says the global economy's outlook has dimmed. Amid a high inflation rising interest rates and two big American bank failures. The situation remains fragile. Chief economist Pierre Olivier grenchen says the IMF has downgraded its global growth outlook below 3%. Downside risks dominate, saying the possibility of rising interest rates leading to recession has gone up sharply, especially in the world's wealthiest countries. Treasury secretary Janet Yellen sees it differently. I wouldn't overdo the negatives negative. Saying the global outlook is reasonably bright, and here at home. The U.S. economy is obviously performing exceptionally well. In a while, yelling is not expecting to downturn. Of course, that remains a risk. Sagar Meghani, Washington.
AP News Radio
Ukraine, IMF agree on $15.6 billion loan package
"The IMF and Ukraine have agreed on a new loan package to support the government's finances severely strained by Russia's invasion. The $15.6 billion deal is expected to leverage even more money by assuring other donors that Ukraine is following strong economic policies. The nation's finance ministry says the program will help to mobilize financing for Ukraine's international partners and ensure the path to post war reconstruction the government's running a huge budget deficit amid massively higher military spending, and is reliant on outside help the loan agreement also aims to support Ukraine's efforts to revamp its economy as part of its bid to join the EU. I'm Charles De Ledesma
CoinDesk
Global Crypto Rules to Be Based on Coming FSB and IMF Synthesis Paper, India Says After G20 Meetings
"3 p.m. Saturday, February 25th, 2023. Global crypto rules to be based on coming FSB, and IMF synthesis paper, India says, after G 20 meetings. Going forward, the basis of global crypto rules will be formed on a new synthesis paper, jointly produced by the International Monetary Fund IMF, and the financial stability board FSB.
CryptoCompare
Market Analysis Report 24 Feb 2023
"10 a.m. Friday, February 24th, 2023. Market analysis report February 24th, 2023. IMF calls for coordinated response to crypto coinbase launches layer two network based blocks Bitcoin revenue dropped 28 last year.
Simply Bitcoin
"imf" Discussed on Simply Bitcoin
"Now, it's Bitcoin. Anyways, El Salvador's Congress last month passed a law regulating the issuance of digital assets by both the state and private entities president buchel announced on Twitter a series of purchases of some 2380 Bitcoin bullish before mid November when he said, did he buy the bottom? The 9 bukele by the bottom. Anyways, when he said the treasury would buy Bitcoin every day. If those purchases were made, the government holds nearly 2470 coins acquired for about a 106 million U.S. dollars. The current value of that investment is 52 million for a paper loss of over 50%. And that's one of the narratives that they spend, look at Michael saylor. He's an idiot, look at 9 buki, he's an idiot, but you know, it's like, remember what your family said? When you got into Bitcoin, most people got into Bitcoin running up into a bull, they get absolutely wrecked, and then they get vindicated after they survive a full cycle. So what's their excuse going to be after 9 bukele and Michael saylor have indicated, quote, greater transparency over the government's transactions and Bitcoin and the financial situation of the state owned Bitcoin wallet remains essential. The IMF highlighted the full recovery of El Salvador's economy to pre-pandemic levels driven by the effective government response to the health crisis, real GDP is projected to grow by 2.4% in 2023, the IMF said above the historical average. However, the lender also expressed a concern over rising current account deficit and the possible spillover effects of a recession in the United States. Okay, moving on to this CNN BC article. And it goes on to say, quote, think of the unthinkable. IMF chief Warren's world is a very different place after crisis like the pandemic, like the virus, right? So, and then this kind of goes into the concept that I was talking about in the very beginning. It's constant nihilism. It's caused it alarmism. This whole article says, look, it wasn't Bitcoin. It was because Bitcoin wasn't accepted. They're still in trouble. It was the government's response to the pandemic that led to an economic growth. Like so many,
TheNewsCrypto
IMF Calls For Addressing of Risks Post Assessment of El Salvador
"4 p.m. Sunday February 12th, 2023. IMF calls for addressing of risks post assessment of El Salvador. The International Monetary Fund IMF issued a final report on the economy of El Salvador on February 10th, 2023. From
The Dan Bongino Show
Nov. 2016: Biden Threatens Ukrainian President About PrivatBank
"And I want you to notice what he says about pre bot bank Well man I took a note on the sports I didn't want to miss it You better do it Before Trump knows all the details No come on Dan Okay listen to yourself Jim play the cut Let me ask you one thing before I forget it Provide bank I understand the governor of the bank is a tenant of about shedding a date certain for the transition to take place I'm being told secondhand I know this is her position for sure that she is unsure of a day and so she gets an agreement from you I told her that I've told them I've told them to get back to her and set a date and I would talk to you about the date Because this is getting very very close what I don't want to have happen I don't want Trump to get in the position where he thinks he's about to buy onto a policy where the financial system is going to collapse and he's going to be looking to pour more money into Ukraine That's how he'll think about it before he gets sophisticated enough to know the detail So anything you can do to push the bank to closure shows that the IMF loan comes forward I would respectfully suggest this critically important to your economic as well as physical security I know it's difficult and I would call a more speech a pain in the ass and a problem for everybody but it really is critical that that you guys should figure this one out and you've been good You have publicly spoken out of it actually you do
AP News Radio
IMF upgrades its outlook for the global economy in 2023
"The IMF has upgraded its outlook for the global economy in 2023. I'm Lisa dwyer. The outlook for the global economy is growing slightly brighter as China eases its zero COVID policies and the world shows surprising resilience in the face of high inflation, elevated interest rates and Russia's ongoing war against Ukraine. That's the view of the International Monetary Fund, which now expects the world economy to grow 2.9% this year. That forecast is better than the 2.7% expansion for the year that the IMF predicted back in October, although that's still down from the estimated 3.4% growth for last year. Dying at four C's inflation easing this year as a result of aggressive interest rate hikes by the Federal Reserve and other major central banks. I'm Lisa dwyer
Bitcoin Audible
"imf" Discussed on Bitcoin Audible
"You don't even get the facade of representation and at least some sort of feedback that you get with a democratically elected leader. Instead, you get a strong arm. You get the equivalent of a drug lord. And what's insane is that this is easier to work with from the IMF because what they're trying to do is have influence to manipulate the economy to do what they want. So if they come in, think about it as like a bank coming into a poor area, is let's say the bank wanted to rip down a whole neighborhood's worth of houses and put up a resort. I don't know why it's stupid example. But they wanted to put up a resort for everybody who works at the bank, right? Essentially, they had their own ends. They wanted to make an income off of something. But nobody in the neighborhood wanted this to happen. They're not going to go house to house. And deal with each person, deal with each family, that has been living there and wants to live in that house. And it was growing food on their land. That's a huge uphill battle. You have to have convinced tons of people, and you have to treat them all as if they have property rights. You have to treat them all as if they actually own their lands and their decisions are the things that matter. Their agreement is something that you have to have. Now, what if there's a drug lord, what if there's what if there's a gang in that neighborhood that strong arming every business every home, every family, well then you just go. To the head of the gang, you've got everything you want. That neighborhood is bulldozed for your project in no time. And anyone who protested, quietly disappeared. And you don't have to think about it. Doesn't matter. As long as the bank gets what they want. I wish I could say
Bitcoin Audible
"imf" Discussed on Bitcoin Audible
"What is up guys? Welcome back to Bitcoin audible. Today we are doing a guy's take episode. And we are doing a follow-up finally to Alex gladstone's, even though I did count it like do two ish three ish shorter guys takes in response to Alex gladstone's piece on structural adjustment, how the IMF and World Bank repress poor countries. I really felt like it was it was in depth enough and eye opening enough that it really, really deserved its own episode. A thorough guys take, if you will, so that is what we are doing today. We're going to talk about or a big picture view. We're going to do an overview of the IMF and World Bank scam. What they are up to and what's what gets me and Sean, I mentioned yesterday, actually, towards the end of the episode, a listener of the show pointed out to me sent me a DM and had a really good point about the fact that this generally people are unaware of this. You know, like most people, in fact, most people who listened to that read and or read gladstone's piece did not realize the degree of just sinister and the malicious control that the IMF and World Bank are exerting through their financial influence through their monetary privilege essentially. And even worse that they describe it as aid. You know, it's one thing to be an evil piece of crap. It's another thing to call yourself a philanthropist and stand up on a pedestal and pat yourself on the back about how amazing you are. I would say it's unbelievable because of how insane the perspective is and the propaganda that they push is in comparison to the reality of the consequences of what they do, but it's not unbelievable. It's very believable, unfortunately.
Bitcoin Audible
The Anatomy of a Scam: The IMF and World Bank Empire
"We're going to talk about or a big picture view. We're going to do an overview of the IMF and World Bank scam. What they are up to and what's what gets me and Sean, I mentioned yesterday, actually, towards the end of the episode, a listener of the show pointed out to me sent me a DM and had a really good point about the fact that this generally people are unaware of this. You know, like most people, in fact, most people who listened to that read and or read gladstone's piece did not realize the degree of just sinister and the malicious control that the IMF and World Bank are exerting through their financial influence through their monetary privilege essentially. And even worse that they describe it as aid. You know, it's one thing to be an evil piece of crap. It's another thing to call yourself a philanthropist and stand up on a pedestal and pat yourself on the back about how amazing you are. I would say it's unbelievable because of how insane the perspective is and the propaganda that they push is in comparison to the reality of the consequences of what they do, but it's not unbelievable. It's very believable, unfortunately. So I want to start this out with just a general overview of why fractional reserve banking is a scam. And more specifically why the bank is the only one that benefits from a situation where they can leverage themselves at the cost of the taxpayer or the consumer. And that they can do this quietly. They can do this without making it obvious the risks that they are taking. And just the idea that just, this is analogy, an analogy I've used many times on this show, but I think it's really good at illustrating the problem. The problem with issuing money as a loan, owed to someone else.
The Eric Metaxas Show
Mel K and Eric Know Elites Don't Care About the Little Guy
"Things we were talking about Mel is that there are people elites who do not for whatever reason care about the little guy. And sometimes it is on a very personal level. They can be contemptuous of someone standing right in front of them, but usually it's more abstract. And it reminds me of the famous scene in the third man when Joseph cotton is up in the prater in this Viennese. It's still there. I've been on it Ferris wheel, and he's up there with the Orson Welles, who's the villain. And Orson Welles looks down and says, you see those people down there, they look like moving dots. They're so far away. What difference would it make if a few of those dots just stopped moving? In other words, if some people die and I can make money off of it, does it really matter? And if you don't believe in God and the sanctity of human life, why should it matter? And for a lot of these people, it doesn't matter. So when you hear about former governor Cuomo or others putting people in nursing homes, realizing people are going to die and it's going to suit you. They don't care. But it's hard for most people to get their heads around the idea that you mean that guy who maybe I don't agree with them and stuff, but you mean he could be that bad. Yeah? Or the banality of evil. Well, that's what I'm saying. It's a place in life where you don't care. And I think that we have to really examine this. And people have to go out there and understand the whole conspiracy theory world saying that sonstein writing a whole book to say that anything anyone saying about Obama was a conspiracy theory after the whole war and report, if anyone questioned it was a conspiracy theorist created by the CIA, we have to start looking at actual conspiracy, not the theories, the facts, and the fact that we have identified who these people are. And they don't hide it, and they have a big meeting coming up, and people should be watching the World Economic Forum, and the Davos meetings coming up themselves and listen to what Noah harari has to say and listen to what Klaus Schwab has to say and listen to what they're talking about with global governance. And then head on over from that website. We form dot org look around there at global governance at smart technology at biometric data at what they want to do with our climate with our government and start really thinking, wow. And then go look at another one of the affiliated websites. The UN website are common agenda. Then you jump over to World Health Organization. Global health won, where you jump over to the Gates Foundation, or you jump over the IMF for the World Bank, or the BIS, and you start to realize this is a club.
ACN Newswire
Indonesia encourages ASEANEU partnership conducted based on equality
"6 p.m. Sunday, December 18th, 2022. Indonesia encourages ASA and EU partnership conducted based on equality. Jakarta, December 18th, 2022 ACN newswire Indonesian president joko widodo attended the 45th ASE in European Union EU commemorative summit held in Brussels, Belgium on Wednesday, December 1 four I and his remarks at the summit. President Jaco E stressed that the partnership between ASEAN and the European Union countries must be based on equality and there should be no coercion. What if we want to build a better partnership that partnership must be based on equality and without coercion? There can no longer be parties who always dictate and think that their standard is better than others. Jocko we said that the 45 years of ASEAN and the European Union partnership had produced some good results, however, he also acknowledged that not all partnerships can always be good so that some differences must be resolved to create a good one. Therefore, Jaco we asked member countries of the European Union to be able to partner inequality with ASEAN countries, president widodo, had encouraged that the good relation and economic cooperation between the two regional organizations and all countries in the two regions must continue to be strengthened earlier. He also stated that Indonesia has always encouraged closer cooperation between ASEAN and the EU, who has been an important trading partner of ASEAN. Quote the trade value between ASEAN and the European Union in 2021 reached U.S. two 68.9 billion. The value is the third largest after China and the United States. Apart from trade, Jacobi also mentioned that the European Union also plays an important role in foreign direct investment in ASEAN region, with an investment value of up to U.S. 26 billion in 2021, which is the second largest investment after China. Vice versa, ASEAN is an increasingly important partner for the EU given the region of post steady economic growth for decades ASEAN has become an economic powerhouse that offers mutually beneficial cooperation since it has the productivity advantage from each country in the region. Caudal projections say that Southeast Asia will remain a center of growth, thus the partnership with ASEAN will certainly be profitable. Pointed out by in fact, the International Monetary Fund IMF estimates that the ASEAN region of pas economy will remain stable with growth reaching 4.3% amid the possibility of a multidimensional crisis at the global level in 2023 dots such an estimation is also reflected on the theme that Indonesia will carry out during its chairmanship in ASEAN next year. Growth quat, with three priority. Agendas, namely recovery rebuilding, digital transformation, and sustainability based on survey from the EUA SEA and business council, some 63% of respondents view ASEAN as the region with the best economic opportunities. Meanwhile, 69% of respondents expect the ASEAN market to become more important in terms of global revenue in the next two years. Moreover, some 97% of respondents expressed hope that negotiation of the ASA and EU free trade agreement FTA will be accelerated and make good progress to be concluded, therefore, regarding the ASA and EU long-standing relationship, president jokowi urged all countries in the two regions to build an equal and mutually beneficial partnership in order to recover from the pandemic and the multidimensional crisis that both are currently facing. What we learned an important lesson that to grow and to prosper together is the only option. We don't oppose only have to move forward together, but we also have to move forward equally. Let us have a better future together concluded written by uni Ari sandy sanaga, editor farda assegaf, C and throughout 2022, copyright 2022 ACN newswire. All right's reserved. WWW dot ACN newswire dot com.
99 Bitcoins
Lessons Learned from FTX Crash This Week in Crypto Nov 28, 2022
"6 a.m. Monday, November 28th, 2022. Lessons learned from FTX crash this week in crypto November 28th, 2022. The post lessons learned from FTX crash this week in crypto November 28th, 2022, appeared first on 99 bitcoins. Biden's pledges 2 billion for distressed crypto projects. The IMF cautions Africa on crypto adoption. Lessons learned from FTX crash this week in crypto November 28th, 2022 read more.
The Breakdown
Bitcoin and Opting Out of the IMF and World Bank
"Let's read structural adjustment that the Twitter thread. Gladstein writes, my essay structural adjustment, how the IMF and World Bank were pressed poor countries and funnel their resources to rich ones, is now live. The bank and fund claimed to help poor countries develop and rescue them from crises. But what if that's not true? As any credit card holder knows, when you borrow, you eventually need to pay back a higher sum. Principal plus interest. This basic concept is forgotten when we think about development economics. But billions of dollars of loans over decades creates even more debt. In the 1960s and 1970s, this is exactly what happened. Huge credit was extended to the third world. Eventually, the amount repaid by borrowers exceeded what was given. This moment happened in 1982. Since then, the net flow of resources has been from poor countries to rich ones. In this way, the IMF and World Bank have approximated the dynamics of colonial drain, where imperial powers looted the periphery of the globe for hundreds of years, obtaining cheap resources and labor and selling finished goods back to markets where they had monopolies. Today, the difference is that the sword and gun have been replaced by weaponized debt. What was once accomplished by physical force is now accomplished by quote unquote structural adjustment. Conditions attached to loans that dictate how borrowers can run their economies. The IMF and later the World Bank attached conditions to their loans that forced third world countries to do what industrial countries like the U.S., UK, Japan, and Germany were never asked to do post World War II. Full austerity measures. The structural adjustment playbook imposed on developing countries included raising taxes. Currency devaluation, shrinking bank credit, wage ceilings, scrapping food and energy subsidies, cutting state healthcare and education, favorable rules for multinational corporations. The goal of structural adjustment and in general of the bank and the fund was to view third world countries as companies. Expenses had to be reduced, profits had to be increased. This meant domestic consumption was to be sacrificed so that exports could be maximized. World Bank policy in particular was designed to transform the traditional consumption agriculture of third world countries into monocrop industry to mass export typically non edible goods. For example, coffee, tea, rubber, palm oil, cocoa, and cotton. World Bank policy was also designed to facilitate the extraction of minerals and other natural resources to international markets. With as little as possible being soaked up by local populations. Think a remote hydro dam powering a mine, putting minerals on a train to a port. Export earnings did not typically benefit locals, but rather helped service foreign debt, purchase weapons, import luxury goods, Phil Swiss bank accounts, and put down descent.
What Bitcoin Did
"imf" Discussed on What Bitcoin Did
"And basically these were the outcomes of the policies of these leaders. The point is the IMF and the bank didn't necessarily use Cold War lenses. They would just lend to anyone who could benefit them. So this is sort of different than you talk about the CIA in American foreign policy during the Cold War. We're almost operating on like, that's like level one. We're like on a second level here. Like the IMF and World Bank are operating on a meta level. Like we're above Cold War politics. We're at the level of timeless strong countries abusing poor countries. This is way beyond the Cold War. And other countries do it too in their own microcosm. China knows exactly the same policy. They won't be as effective as the United States and its allies because they don't control the reserve currency of the world. But they are absolutely trying to copy the playbook of the IMF and World Bank. In fact, I have a quote here. So does the belt and road just show that this would happen with or without the World Bank and the IMF? I mean, you've basically seen this just power games. Yeah, well, let me read. I'll let the listeners and viewers judge, but here's the description of the belt and road scheme. And I'll let you determine how closely you think this reminds you of something else that we've just covered. So through its $1 trillion one belt one road initiative, China is supporting infrastructure projects in strategically located developing countries, often by extending huge loans to their governments. As a result, countries are becoming ensnared in a debt trap that leaves them vulnerable to China's influence. The projects that China is supporting are often intended not to support the local economy but to facilitate Chinese access to natural resources or to open the market for its low cost and shoddy export goods. In many cases, China even sends its own construction workers, minimizing the number of local jobs that are created. They are following the IMF blueprint to a T literally to a T that's exactly what the IMF does, right? And you know, I don't know how successful they'll be. But the point is the Soviets did some of this. The Chinese will do it. Every great power will do it to weaker countries. So what I mean by operating on a different level is simply that, you know, this is kind of like timeless, I think, a timeless struggle. And I don't know, if changing politics really alters it very much.
What Bitcoin Did
"imf" Discussed on What Bitcoin Did
"And if you just Google, IMF history and insert the name of the country, it'll show you the entire history. So if you want to, for example, do an Argentina. Do IMF history Argentina in Google? Check this out, Pete. So this is all of the IMF loans to Argentina. So you can think about this as every time the government in Argentina had a crisis. Starting in 1958, you see over there the amount agreed and the amount drawn. Those are the loans that were taken. So 81 billion agreement. At the beginning of 75 million and most recently, only four years ago, 40 billion. Argentina got the single largest loan from IMF in its history, 41 billion, almost $41 billion. When it says a mount drone, is that how much of that they views. Yeah, they've actually. So they've still got access to another 9 billion as of right now. And they took $31 billion. And the amount outstanding is how much they still owe, hold on. Hold on. No, no, no. So the amount of greed column is just the IMF says we'll give you 40 billion. And the Argentina doesn't have to take the whole 40 billion. They've taken 31.9 billion. But that's how much debt they owe back. So every time there's a new loan, it essentially repays the overload. So see the 40 billion paid off all the old stuff. Paid off all the old stuff. That's what they still owe 31 billion. Yeah. And I'll give you the number. Essentially they're wrapping it up into a new loan. Yeah, but check this out. This isn't seen. So basically, if you look at the total debt owed by poor countries, we call it the external public debt, okay? That was $46 billion in the year 1970. Today it's 8.7 trillion. So in the past 50 years, countries like India, the Philippines and the Congo. Now oh, they're former colonial masters. A 189 times the amount they owed in 1970. They've paid $4.2 trillion on interest payments alone since 1980. And for every $1 of aid that developing countries receive, they lose $24 in that outflows. This is the loan shocks. The behavior of loan sharks is to keep you permanently indebted. It's to come to the traditional loan choice is to knock on the door. It's like, do you need 50 pound to borrow to get you through to payday? Yeah, I need 50 pound. Great. By the time next payday comes, you owe 200 pounds. You're permanently in
What Bitcoin Did
"imf" Discussed on What Bitcoin Did
"And then they would have this agreement, which is basically a credit line that they would the sovereign government would start to draw down that credit line. And I'm if we continue to provide that so long as they saw progress. But what does progress is that specific political goals that they would like to see? Yes, the best way I could put it. And it's been struggling to frame it the right way. But basically around the end of the 50s, early 60s, you had two main things happen in the context of our conversation. You had, again, you had Europe and Japan kind of get back on their feet and become kind of mighty again, right? With their economies that are industries. They recovered from the wreckage of World War II. And then you had decolonization, right? So you had all the empires pulling away from their former colonies. In 1960s, kind of like the known as the end of colonialism, right? Some of the colonial empire's fell away in the 50s, some fellow away after 1960, but basically 1960s sort of supposed to mark the end of colonialism. So what my thesis is is that the World Bank and IMF were created to help stabilize and sort of, let's say, rebuild Europe and Japan. And once that was done, unfortunately, they were repurposed to extract resources and cheap labor from the developing world. Like swapping territorial colonialism with financial colonialism. Yeah, in the same way that when I write about the monetary colonialism in West Africa, the French pulled away politically, like they no longer controlled French West Africa didn't exist anymore. It was like a sovereign nations, but they still controlled the money, right? So we went from political colonialism to economic colonialism. So I guess what I would argue is that post 1960, the bank and the fund
What Bitcoin Did
"imf" Discussed on What Bitcoin Did
"Now originally, they were created to help rebuild Europe and Japan after World War II. That was like the original idea. The bank was a development bank, so the bank was supposed to give out loans. To rebuild infrastructure. The IMF was supposed to address balance of payments concerns. So when a country would start to have basically an exports crisis, like basically when their imports started to become much higher than their exports. And they couldn't pay their invoices they couldn't import things. They couldn't pay debt back. The IMF existed as an institution to help address that. So originally, they had these two kind of very different roles. And in the first decade, they largely focused their funding on Europe and on a handful of more modernized industrialized developing countries like turkey, for example. After the mid 50s, Europe was back on its feet in Japan was like crushing it. Okay. These economies were clearly kind of they found their step again and they were leading the world again. So the bank and funds energies were directed towards the developing world. And that's where we're going to. So they were created with good intention and relatively successful early on in rebuilding or supporting the rebuild of Europe and Japan. I think it's fair to say that initially the intention was good. Yes. They were built to prevent what happened, essentially in the 1930s, which was like the world had broken apart, no one trusted each other. There was competitive currency devaluation, so the bank and the fund were created to create international economic stability. Unfortunately, that is the opposite of what they've done in their history.
AP News Radio
Asia-Pacific leaders condemn war, renew calls for open trade
"Leaders from around the Asia Pacific called for an end to Russia's war in Ukraine and pledged to steer the region's economies towards sustainable growth As the summit of the Asia Pacific economic cooperation forum came to a close the hosting country Thailand said that most countries condemned the war in Ukraine The declaration issued by apec leaders acknowledged that member states had differing views on the war but noted that the conflicts can have significant consequences for the global economy the meeting wrapped up a flurry of events throughout the region that have given leaders a chance to meet face to face a rare occurrence after years of pandemic precautions IMF managing director Chris Selena Giorgio acknowledged new global challenges We met here in Thailand three years ago last And since then the world has changed By events none of us for so coming at that time The COVID pandemic and the war in Ukraine I'm Karen Chammas
Money For the Rest of Us
"imf" Discussed on Money For the Rest of Us
"The IMF <Speech_Male> seems like they did a good <Speech_Male> job with <Speech_Male> the Asian financial <Speech_Male> crisis, <Speech_Male> helping emerging <Speech_Male> market countries <Speech_Male> many of which were able <Speech_Male> since then <Speech_Male> to build up <Speech_Male> foreign currency reserves <Speech_Male> to be in <Speech_Male> a much better <Speech_Male> position <Speech_Male> working through what <Speech_Male> happened with COVID <Speech_Male> and <Speech_Male> the <Speech_Male> current economic <Speech_Male> slowdown, <Speech_Male> even though the dollar is <Speech_Male> strong, emerging <Speech_Male> markets, many <Speech_Male> of the emerging <Speech_Male> markets that actually <Speech_Male> run trade <Speech_Male> surpluses, <Speech_Male> they're doing fine. <Speech_Male> <Advertisement> Compared to <Speech_Male> <Advertisement> other periods <Speech_Male> of crisis, <Speech_Male> such as the <Speech_Male> late 1990s <Speech_Male> with Asia emerging <Speech_Male> markets where <Speech_Male> a number of those countries <Speech_Male> stock markets <Speech_Male> fell <Speech_Male> over 50%. <Speech_Male> In fact, I believe <Speech_Male> one fund <Speech_Male> I remember, I think it was a Morgan <Speech_Male> Stanley Asian <Speech_Male> fund <Speech_Male> that one <Speech_Male> of my clients <Speech_Male> was invested <Speech_Male> in because they felt <Speech_Male> emerging markets were too <Speech_Male> risky <Speech_Male> to hold Latin <Speech_Male> America. They just wanted <Speech_Male> Asian emerging markets. <Speech_Male> That fund <Speech_Male> was down 80%. <Speech_Male> I was <Speech_Male> probably not <Speech_Male> my <Speech_Male> most positive <Speech_Male> moment as a <Speech_Male> newly minted <Speech_Male> financial adviser <Speech_Male> allowing my <Speech_Male> client <Speech_Male> to go into an <Speech_Male> Asian emerging <Speech_Male> markets <Speech_Male> fund right before <Speech_Male> the Asian financial <Speech_Male> crisis. <Silence> The IMF <Speech_Male> has been criticized <Speech_Male> for <Speech_Male> how it's handled the <Speech_Male> situation <Speech_Male> with Greece, <Speech_Male> which this was <Speech_Male> a number of years ago, <Speech_Male> following the great <Speech_Male> financial crisis, but the Greece <Speech_Male> was challenging <Speech_Male> because <Speech_Male> Greece didn't have <Speech_Male> a crappy currency. <Speech_Male> It had the Euros. So <Speech_Male> if it was borrowing <Speech_Male> from <Speech_Male> the IMF, <Speech_Male> it <Speech_Male> basically would have to <Speech_Male> provide Euros <Speech_Male> to get <Speech_Male> SDRs back <Speech_Male> that are partially made up <Speech_Male> of Euro. So <Speech_Male> the IMF <Speech_Male> organization just wasn't as <Speech_Male> effective in that. <Speech_Male> But generally <Speech_Male> having some <Speech_Male> organization <Speech_Male> to <Speech_Male> be a lender <Speech_Male> of last resort <Speech_Male> of countries, <Speech_Male> the least <Speech_Male> <Advertisement> provide <Speech_Male> some counsel, <Speech_Male> some advice, <Speech_Male> some <Speech_Male> policy recommendations. <Speech_Male> I think generally is <Speech_Male> a good thing. The <Speech_Male> ability to tap in <Speech_Male> to <Speech_Male> the financial <Speech_Male> capital and have an <Speech_Male> organization that can <Speech_Male> facilitate that <Speech_Male> as different countries <Speech_Male> basically effectively <Speech_Male> are helping out other <Speech_Male> countries that <Speech_Male> are struggling <Speech_Male> with the IMF sort <Speech_Male> of the quarterback, <Speech_Male> assisting <Speech_Male> with this capital <Speech_Male> allocation through <Speech_Male> the SDRs and <Speech_Male> through this quota system. <Silence> <Speech_Male> We don't know if <Speech_Male> having the IMF is <Speech_Male> actually averted <Speech_Male> more crisis <Speech_Male> because <Speech_Male> monetary <Speech_Male> systems creating <Speech_Male> a monetary system <Speech_Male> is incredibly complicated. <Silence> <Advertisement> The bretton <Speech_Male> <Advertisement> Woods system <Speech_Male> worked for only <Speech_Male> about 30 <Speech_Male> years. We've <Speech_Male> had a <Speech_Male> floating rate system <Speech_Male> for <Speech_Male> 50 years. <Speech_Male> A period <Speech_Male> when we've had <Speech_Male> more inflation <Speech_Male> and <Speech_Male> potentially more <Speech_Male> economic crisis. <Silence> I'm not absolutely <Speech_Male> sure on that, but <Speech_Male> my sense is, yes, <Speech_Male> or maybe I'm just more aware <Speech_Male> of them. But that's <Speech_Male> what the IMF does. <Speech_Male> It's <Speech_Male> controversial. <Speech_Male> It uses <Speech_Male> its own <Speech_Male> made up currency <Speech_Male> SDRs, which <Speech_Male> is funded out of <Speech_Male> thin air, but it <Speech_Male> does allow for <Speech_Male> some coordination <Speech_Male> among a 190 <Speech_Male> countries. <Speech_Male> It's been in existence <Speech_Male> for <Speech_Male> over 80 years <Speech_Male> and continues to <Speech_Male> evolve <Speech_Male> as the <Speech_Male> global economy <Speech_Male> evolves. <Speech_Male> <SpeakerChange> That's <Speech_Male> episode four <Speech_Male> O 9. Thanks for listening. <Silence> <Speech_Male> I have enjoyed <Speech_Male> teaching you about investing <Speech_Male> on this podcast <Speech_Male> for over <Speech_Male> <Advertisement> 8 <SpeakerChange> years now. <Silence> <Advertisement> But I also <Speech_Male> <Advertisement> love to write. <Speech_Male> <Advertisement> There's a benefit <Speech_Male> <Advertisement> to riding over <Speech_Male> <Advertisement> podcasting, and <Speech_Male> that's why I write <Speech_Male> a weekly <Speech_Male> email newsletter called <Speech_Male> the insider's guide. <Silence>
Money For the Rest of Us
"imf" Discussed on Money For the Rest of Us
"This would mean they would need to spend less than they take in and revenue, and that doesn't count interest on the debt. So a two and a half percent budget surplus in 2022 and 1.9% in 2023. And to make other reforms. These loans that were made to Argentina and other countries are denominated in what is known as special drawing rights or SDRs. SDRs were created in 1969 and they are a basket of international currencies made up of the U.S. dollar makes up 43% of SDRs. The Euro 29%. The Chinese yuan, 12%. The Japanese yen is around 7 and a half percent and the pound Sterling is 7.4%. So basically, an SDR, it's a unit of account. It's how the IMF accounts for loans. They don't do them in dollars. They do them in SDRs. And then the value of an SDR fluctuates based on the strength of the underlying currencies. Each member country has a quota of capital denominated in these SDRs. And when IMF makes a loan, it's done in these SDRs into where basically it's a big accounting book. A country has a certain quota of SDRs. It's their contribution that they're willing to make. And if they have taken more SDRs, then their quota, then they owe SDRs to others. And if they owe SDRs the other, there's an interest payment and that interest payment is adjusted weekly. So right now, if you have more SDRs, then your quota amount, you have to pay an annual interest rate on 2.6% of the excess. And if you have less SDRs on your IMF accounting book, then you're quota, then you'll receiving interest. Isabella kaminska writing for the Financial Times, she's no longer there. This was back in 2015. She says, for an IMF loan, you can't actually technically default. Because it's not alone. It's a swap, she writes, a swap of one country's relatively crappy currency for currencies that can actually get you stuff on the market. So when Argentina takes out a $44 billion loan, they haven't taken all that amount yet. It's denominated in SDRs, and they provide the IMF, Argentine pesos, and then they get SDRs in return, which because SDRs are made up of a basket of currency. They can sell those SDRs for dollars. Or other currencies, they are traded among central banks. They're convertible to actually buy things with
Money For the Rest of Us
"imf" Discussed on Money For the Rest of Us
"Terms, things that countries have to do. If we look, then at the level of loans outstanding by the IMF, there's a total of a $108 billion. Of the $1 trillion, the IMF has at its disposal. The largest borrower by far is Argentina at $32 billion. Egypt has $14 billion Ukraine $8 billion in loans outstanding and Pakistan $6 billion. Argentina is an interesting case. They were just approved in March for I believe it's alone up to $36 billion. Now, Argentina already had IMF loans outstanding from 2018, and they've had a horrendous financial crisis. We looked at Argentina more detail back in episode two 33. And I've been intrigued by Argentina the last few weeks after interviewing Asha Mehta who's a managing partner in CIO of global delta capital. This is a firm that specializes in emerging markets and frontier markets and will share that interview in episode four 11 of the podcast here in a couple of weeks. But Camden and I asked her, where's her favorite place to visit? She's traveled the globe extensively. And she said her favorite country to visit is Argentina. To visit C emphasize not to invest. Simon kuznets, who's a noble laureate, said there are four kinds of countries in the world. Developed countries, undeveloped countries, Japan, and Argentina. In other words, he feels Japan and Argentina are unique, which makes me want to go visit Argentina. I've been to Japan numerous times. I've not been to Argentina. Argentina used to be one of the richest countries in the world, but has had struggles for decades. Raphael is an Argentinian economist. He says, if a guy has been hit by 700,000 bullets, it's hard to work out, which one of them killed him. And he suggests that's the way Argentina is. It's so difficult to figure out. Why the country continues to have economic challenges. Certainly, political instability. There were military coups in Argentina in 1930, 1943, 1955, 62, 66, and 76. Argentina has defaulted on their government debt 8 times. Two decades ago, the IMF stepped in to try to prevent a crisis in Argentina. This would have been in the late 90s, but the crisis happened anyway. GDP fell 20% and the government defaulted on its debt for the 7th time. In its history, the economy at times been significantly mismanaged with high inflation. Hyperinflation in 1989 and 1990, and then in 2020, Argentina defaulted on their debt again, including a $60 billion loan from the IMF in 2018. So there's been ongoing negotiations and in March of this year, Argentina, again, has a new standby agreement with the IMF with conditions that they need to meet, including reducing the budget deficit, which it's been a challenge. The Economist points out the government effectively has been printing money with the cooperation of Argentina's Central Bank in order to plug the deficit between the difference between what is being spent and the tax revenue. In March then, the IMF agreed a new $44 billion agreement with Argentina, not the 36 billion I mentioned. They have to achieve a surplus of their primary deficit.
Money For the Rest of Us
"imf" Discussed on Money For the Rest of Us
"The third area then is lending. IMF provides financial support for countries that are experiencing some type of crisis. Hopefully to create some breathing rooms or they can adjust their economic policies and keep capital from flowing out of the country. When there's a crisis, capital wants to leave, and that can lead to a crash of the exchange rate. It can lead oftentimes because of a currency crashes, the price of imports skyrocket that leads to inflation, can lead to an economic contraction, a deep recession. So essentially stagflation, high inflation, along with an economic recession, effectively the IMF is the lender of last resort for governments and central banks that are experiencing a crisis. Some call the IMF of firefighter, and if we look at the IMF, they have about a $1 trillion that they can draw on to make loans to countries that are experiencing a crisis. Their first line of defense are quotas that the member countries have that basically pledges of capital that they need to be willing to make available to the IMF to help other countries. And that's about $452 billion. In addition, IMF can borrow from other countries and other $408 billion above and beyond the mandatory quotas from the IMF members. And then there are additional borrowings that the IMF can do upwards of a $152 billion. A total of around a $1 trillion. Now these crises that countries experienced, some can be domestic crises, a large economic imbalance that say a huge current account deficit basically a huge trade deficit where a country is importing significantly more than its exporting that shortfall needs to be financed somehow because there's a shortfall of foreign currency and that can put pressure on the currency. Currency weakness was the reason for the largest IMF loan ever in 1976 to the United Kingdom. This was three to four years after currencies started floating relative to each other and investors felt that the pound, the British pound was overvalued, and that the government might devalue the pound. So apparently at that time it was sort of floating, but not exactly. But there was pressure on the pound Sterling, as it lost value relative to the dollar. And at that time, the US Treasury secretary in the U.S. agreed that the pound had fallen too much and was undervalued and the U.S. offered to basically work with the international bank of settlements and IMF so that alone could be given to the UK to support the pound and there was a $3.9 billion loan in September 1976. As part of that, and this happens any time there's a loan and this is where the IMF gets controversial is there are negotiations. Actions the government has to take to reduce its budget deficit to cut expenditures to raise taxes and the UK agreed to do that in order to take this $4 billion loan. By the end of 1977, partly due to new oil revenues, UK's balance of trade, they were running less of a trade deficit. The pound strengthened in the crisis was averted and Britain didn't have to draw on the entire loan amount, but it's an example of the IMF stepping in with the financial fire hose to aid a country that's facing some type of financial crisis. So that's an internal domestic factor. There's also external factors that can lead to shocks, such as a natural disaster, or a large swing in commodity prices. Before we continue, let me pause and share some words from this week's sponsors.
Money For the Rest of Us
"imf" Discussed on Money For the Rest of Us
"Convertibility expropriation war and civil disturbances. And then there's an arm of the World Bank that settles investment disputes. That's how we're going to say about the World Bank and this episode. Their controversial end of themselves and in the sense that development goals in general helping poor countries developed is in and of itself a controversial topic. When the IMF was established, in 1944, there were 44 founding members. Now, as I mentioned, there are a 190 countries and the staff of the IMF comes from a 150 nations. The IMF has three principal missions. One to further international monetary cooperation, second encourage the expansion of trade and economic growth. And third, to discourage policies that could harm prosperity. And to accomplish that, the member countries of the IMF try to work collaboratively together. The IMF itself is governed by an accountable to the 190 countries that are members. There is a board of governors, and that's the highest decision making body of the IMF. One governor from each country and one alternate governor. Voting rights or this board of governors, the percent of the vote that they get depends on their quota or capital contribution or promised contribution to the IMF. The country with the largest percent of votes is the U.S. at 16 and a half percent of the votes. China has 6% of the voting rights. Japan 6% and Germany 5%. The IMF has a managing director, kristalina, georgieva. She has been the managing director of the IMF since September 2019. There are three principal activities of the IMF in their aim to further international monetary cooperation, curry to expansion of trade and economic growth and to discourage policies that harm prosperity and the three principal activities that they go about to accomplish that mission is first is policy advice. The second is technical assistance and the third is lending and we'll spend the most time on lending and that is the most controversial aspect of the IMF. The policy advice follows under with is known as surveillance, which I thought was an odd term to use, but the IMF vigilantly monitors what other countries are doing in terms of their monetary policy. What are their level of interest rates in terms of how they go about trade? The other economic decisions that the government and the central banks make in those countries. How they set their foreign exchange policy. The staff of the IMF visits all 190 countries. Once per year meets with government, leaders, central bankers, labor and business leaders, academics, and other stakeholders in the economy. And they make recommendations on how the country can promote growth. Instability and prevent financial crises. All that data goes into a report and the report, for example, they just released the one from Mexico is called an article four consultation. This is the report describes what's going on and any recommendations for the country. To that's the first area, policy advice.
WNYC 93.9 FM
"imf" Discussed on WNYC 93.9 FM
"This is morning edition from NPR news. I'm Leila faulted. And I'm a Martinez. The International Monetary Fund or IMF is bracing for a challenging time amid signs of a global slowdown. The organization and it's almost 200 member countries have been meeting in Washington this week to address this uncertainty, but what does the IMF do exactly? Adrian mom and patty hirsch from our daily economics podcast, the indicator explained. The International Monetary Fund is a bit like one of those old pieces of furniture that you've had in your family for ages. You know, it was in your grandma's house and then it was in your mom's house. So now it's in your house. And it's a great piece, but you don't really know that much about it. The IMF has been part of the furniture since 1944. The originally was a kind of regulatory sort of body that would police the system. This is Rex gauche. He's the official historian of the IMF. To make sure everyone played by the rules of the game. The game, of course, was the international financial system. And the IMF was basically given three tasks to sort of police this system. First, it had to monitor the health of member countries. Second, it had to provide training and technical assistance. And finally, it was supposed to lend money to countries when they needed it. But the most important role in visioned by the IMF's finders was the monitoring function. Every year, the IMF visits every one of its member nations. Daniel Bradley was a professor in the center for human rights at the university of Pretoria in South Africa. He says these so called article four visits are a bit like an annual physical. If you think of it in terms of health, that's a maybe you need to change your diet, start to exercising more. And that's improves your health. And that's sort of what the IMF likes to think it's doing. And to maybe stretch the metaphor a little more, the money that the IMF gives out is kind of like medicine. The good medicine that is. But it's contingent on countries following doctors orders. The IMF is not a project lender. When I may have given my need to a country, it goes just into the budget of the government and it can be used for almost any purpose. Of course, just like a needy student who gets a big breath they check from an overbearing aunt, if a country wants to come back to the well for more IMF money down the line, it would be well advised to follow the IMF's policies. Countries only come to the fund when they have an external deficit or debt problem. And so almost by definition, they're going to have to do, if you like austerity, policies. Basically, we're talking about slashing budgets, yanking, subsidies, cutting spending. This philosophy of deploying austerity as a response to economic crises has given the IMF kind of a bad name in the past. Austerity isn't the only reason the IMF is a somewhat controversial organization. It's been accused of bias of a lack of transparency of undermining democracy and of charging interest rates that only exacerbate the troubles of borrower countries. But Daniel says the organization is changing. It's recognized that its policies from the 1980s and 1990s has had very devastating and negative effects in many countries, particularly in Africa. The IMF was designed to keep the global financial system spinning on its axis. But you can kind of see why this is kind of a Mission Impossible. The organization has to make controversial decisions about which have almost 200 member countries it's going to lend to and how much money they're going to get and under what conditions. But it's been 78 years now. The global financial system is still spinning, and the IMF is still part of the furniture. So guess it must be doing something right. Adrian ma, paddy hirsch, NPR news
AP News Radio
IMF to Lower Global Growth Forecast
"The International Monetary Fund is again lowering its projections for global economic growth I'm Ben Thomas with their latest assessment IMF managing director crystalline Georgia that describes the outlook as darker than we would have loved it to be IMF now projects global growth will come in at 3.2% for this year and 2.9% for next Speaking at Georgetown university in Washington Georgia says countries making up one third of the world economy could see at least two consecutive quarters of economic contraction this year or next And by 2026 that could lead to global output shrinking by $4 trillion This is the size of the German economy Gone Says the world economy is experiencing multiple shocks including Russia's invasion of Ukraine and the view is more likely to get worse than to get better As for what to do the IMF chief starts with central banks staying the course on inflation though she cautions if we tighten too much too fast and do so in synchronized manner
What Bitcoin Did
"imf" Discussed on What Bitcoin Did
"Was strike is to deliver an experience and drive that mission forward on top of Bitcoin. And then it goes on for a very long time. The email is very long. But as an executive at the IMF that now understands that Bitcoin and lightning allow for a superior cross border payments experience. Which is remarkable. So I feel like the world should know that. If I get in trouble for reading that, we'll see. We'll see. Not sure I care anyway. Well, listen, but the only reason he came out until bouquet to sell his Bitcoin. So. What do you think's going on with those guys? With the IMF? Yeah. Using the realizing this is something they can use or no. So the language with me was supposedly you're making a cross border payments instant and free. You might explain in that mister tough guy. And so. I explained it. Now their relationship with countries with lesser developed countries with emerging markets is pretty known and Bitcoin poses a pretty serious threat to the business that they do. So I don't think it needs to be analyzed, which more than that. But I wonder, is it something they will be considering promoting pursuing using talking to other countries about saying you should consider adopting this technology? I think so. A large part of my presentation was not only about the efficiencies when it comes to speed and cost, which is kind of like the headline. Like Western Union is a week and 20% and a lightning is free and instant. But there's an also more potentially more important undertone, which is the inclusion that's involved. So a lot of the IMF's relationships with these smaller lesser developed markets, there's a massive financial inclusion problem. And when I went through the tortilla chips and the peanuts and the raisins, it was very clear to see the inclusion that this monetary network allows for. Which benefits everyone. And so I'm hopeful. I mean, we're talking about a legacy institution that has a reputation and existing relationships that outdate my life by a long while. And so I don't think that a presentation by me is going to change things overnight..
The Breakdown with NLW
"imf" Discussed on The Breakdown with NLW
"What is driving all of this anger coming from the global establishment? It really comes back to what the breakdown is about power and power shifts. The IMF has been the only game in town for distressed sovereigns since forever at this point. Bukele and El Salvador are pushing against that. They represent an alternative approach. Welcome back to the breakdown with me, and I'll W. It's a daily podcast on macro Bitcoin and the big picture power shifts remaking our world. The breakdown is sponsored by nexo dot IO, abra, NFTX, and produced and distributed by coins..
The Breakdown with NLW
"imf" Discussed on The Breakdown with NLW
"Today? Oh, just connected the El Salvador volcano Bitcoin mine to the blockstream satellite network. And listen, I do think it's worth taking a pause to appreciate this. It's a massive brain changing thing to see how far the discussion around Bitcoin and what it can do and how it intersects with geopolitics is common in such a short period of time. However, there was another take one of the most frequent that I saw that had to do with geopolitical competition among nations. Nick can't mine tweets El Salvador's Bitcoin city will offer 0% income tax, 0% capital gains tax, 0% property tax and 0% payroll tax. Remember Biden and yelling wanting to tax your unrealized gains, nation state game theory in full swing. Peter McCormick tweets Costa Rica wants to introduce a 13% value added tax and 15% capital gains tax on Bitcoin. El Salvador is issuing $1 billion Bitcoin bond in building a city free of income and capital gains tax. Winners and losers define themselves. Dylan McLaren says El Salvador using $500 million of a debt raise to buy Bitcoin is vastly underappreciated. El Salvador's GDP is 26 billion, 103rd globally, and they aren't issuers of their own currency. What happens when a larger nation that can print their own money does the same thing? Preston says that the rest of the world isn't paying attention. They're about to. El Salvador is the micro strategy of nation states. Now, to me, an even more interesting geo strategic angle has to do with the relationship between the IMF and El Salvador. Almost exactly a month ago, there were dozens of articles like this one from fortune. El Salvador needs an IMF loan, its Central Bank thinks Bitcoin can sweeten the deal. Basically this article is all about how the IMF and El Salvador were in talks for a $1.3 billion extended fund facility. The IMF was reviewing El Salvador's finances and economics, and the bouquet administration was saying that Bitcoin was actually going to be a boon to that process. However, as fortune points out, quote, though the nation doesn't have major dollar bond payments until 2023, it's highly indebted.
The Breakdown with NLW
"imf" Discussed on The Breakdown with NLW
"Attempting to make crypto assets and national currency is an inadvisable shortcut. Now you might be asking yourself why should we even care what the IMF thinks? But we'll come to that in a little bit. So the summer sees this idea settling and technical development happening and on September 7th, a very auspicious day, my birthday. The Bitcoin legal tender law goes into effect. The government launches their crypto wallet chivo, which is apparently slang for cool and gifts anyone who downloaded the wallet $30 worth of Bitcoin. Now the rollout has not been without controversy. First, there have been numerous technical challenges. One of the members of our breakers Discord was just down there with Bitcoin IO and reported some of these challenges like ATMs requiring long confirmation times and just service providers not necessarily being super enthusiastic about accepting it. Now, my honest read here is that wiring up an entire nation to take a new currency has fairly significant technical and social burdens. On the technical side, it's not that we should be excited about any of the challenges that El Salvador has faced, but nothing has seemed particularly egregious to me. Nothing has seemed out of the realm of what you might expect with such a radical shift. On the social side, when you've trusted a currency like the U.S. dollar for a long time and then all of a sudden this things come out of nowhere and is mandated of course there's going to be some amount of resistance. Of course, there's going to be a trust hurdle. And frankly, this is part of the challenge with the Bitcoin mandate. It inherently breeds some amount of mistrust. That doesn't make it not the right decision for the country. I'm not really commenting on that. It's just that even if it is the right decision, it's going to come with consequences, and people feeling put upon because they're literally being put upon is one of them. Indeed, the mandate for people to accept Bitcoin is definitely one of the most contentious parts of this law, even.