A Sucking Sound At The IMF
November 17, 2008 by Douglas A. McIntyre
The IMF will need more money. That should come as no surprise given the number of countries likely to come to it for bailout cash.
According to Reuters, "International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn told the BBC his organization was likely to need at least $100 billion in extra funding over the next six months to help countries out of the mire."
Where does that money come from?
The answer is almost certainly over-stretched central banks in the large economies who need the capital to keep their own nations from falling into a deeper and deeper recession.
But, the modest-sized countries that need the money cannot be allowed to fail, so the national debts in the US, large EU countries, and China are about to rise.
Recessions are the fathers of unbalanced budgets, so there is nothing new here.
Douglas A. McIntyre
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