IMF calls for nationalisation of banks to avoid "systemic threat to global finance"

What this forum has foreseen and outlined over the last 3 years is now on the lips of the IMF: the entire system is under threat. When the IMF comes straight out with it, you know it is very shortly before midnight.

But while those who hold a stake in the financial system - for whom read virtually everyone - stand to lose everything from their pension to their income, many have suspected the financial oligarchs have an agenda which might actually be served by a global crisis in the system. If, as many believe, that agenda is driven by a desire to create a new, centrally-controlled, universal financial system, then government control of the banks would be a very convenient step along the way...

The IMF's deputy managing director is clearly dropping a big hint that a significant number of remaining banks are - in view of the crisis in Europe - effectively no longer solvent. The solution: recapitalization via nationalisation. And it is all very well to speak of 'partial nationalisation' on this side of an impending collapse; but if the banks were left entirely insolvent, 'partial' would quickly be removed from the equation.

And in a world where everything is done to avoid undermining 'confidence' in the markets (i.e. those in the know deny the realities till they have no choice but to admit them), a lot of what is contained in the following, coming from the horse's mouth, will be taken by many as a bombshell:

IMF: Europe needs to take decisive action now on banking crisis

The International Monetary Fund (IMF) has issued its starkest warning to date that Europe's banking debacle is turning into a systemic threat to global finance and can no longer be allowed to fester.

"This is the most urgent crisis facing the world today," said Zhu Min, the IMF's deputy managing director and China's voice at the institution.

"There is no room for politicians to muddle through: they have to take decisive action today. Banks must be recapitalised and made solvent," he said at the World Economic Forum in Dalian.

The IMF has ruffled feathers in Europe by calling on the region's banks to raise €200bn (£174bn) in fresh capital, with partial nationalisation and by compulsion if necessary, but events are fast vindicating the Fund.

William Rhodes, the former head of the Citigroup and a veteran of debt restructuring in Latin America and East Asia, said Europe had wasted its chance to stop the downward spiral.

"You only have so much time in a crisis before the losses become uncontrollable, as Latin America learned the hard way. But the Europeans thought they were different and refused to recognise the losses. Now they are facing contagion," he said.

"You can't just rely on austerity, you also have to show citizens that there is light at the end of the tunnel," he said, alluding to the Brady plan for Latin America that gave countries enough debt relief and oxygen to recover.
"What's spooking markets is that Europe's leaders say they will do this and that but fail to give a date, and that kills credibility," he said.

Victor Chu, chair of Hong Kong's First Eastern Investment Group, said Europe's policy shuffle had reached the end of the road. "My hunch is that Greece won't deliver so we have to think the unthinkable, and prepare for the worst," he said.

Vincent Van Quickenborne, Belgium's economy minister, said the EU had reached a pivotal moment where it either goes the whole hog as a "United States of Europe" or lets the project fall apart. "It's either unity or divorce, but divorce for Europe would be opening Pandora's Box," he said in Dalian.

The IMF's Dr Min said China too has a serious problem, with credit running at 200pc of GDP. "There is a large potential risk," he said...

Source


Surely what is above all most striking is the clarity of the agendas on show!

Hm, beware of the Danaos when bringing false hope

They say nothing about punishing?

Nationalize them banks.
Cuz we know the government can do better. LOL!

Just let them fail. That's what capitalism is all about.
Let's not keep supporting a failing business model.

reply to post by grey580


You make a lot of sense.

Unfortunately, sanity does not rule. Agendas do.

This could call for a one-liner like: Yikes!



Good catch and watch the globalists do the "quasi-governmental" shuffle!

This is the part where the central banks start the shuck and jive, stick and move, and rabbit punch the more trusting nations.... poor Greece... the entire nation will take the public (MSM) blame for the financial industry's machinations.... wait and see.

Since banks are the governments, this is a full load of rotten frogs thrown into the quiet pond of the stupid masses