IMF chief, Christine Lagarde warns that there could be another Great Depression unless Governments pay up. Sounds like extortion to me. She met with Angela Merkel on Sunday, and went on to say

“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.”

On Monday Lagarde hinted that Germany is going to have to stump up the cash as she outlined 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.

$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.

– More government spending in those European countries that can afford it, to stimulate the economy for everyone else. She didn’t mention Germany, but German taxpayers, please step up to the plate. Your money is needed elsewhere. Or else—

– Common liabilities, such as Eurobonds, through which taxpayers in fiscally stronger countries, like Germany, would guarantee the debt of others.

– Elimination of trade imbalances by stimulating internal demand in countries with large trade surpluses. Alas, Germany’s economy lives and dies by its exports, and a drop in the surplus has a vicious effect on GDP. Read…. Germany’s Export Debacle.

Source: Blacklistednews

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