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Originally posted by smirkley
Bah,.. the so called sequestor will not happen.
That would be political self-administered genocide for the republicans.
They will push something through on around midnight of the deadline, so they wont loose any sleep about any upcoming re-elections.
...What’s finally flummoxed the IMF is the eurozone, a crisis within the wider crisis which the IMF is basically too compromised to be able properly to address, though this hasn’t stopped it from trying. In becoming part of the hated “troika” which imposes apparently counter-productive austerity on weaker members of the euro, the IMF has badly discredited itself and by doing so is steadily undermining its validity on the wider international stage.
The IMF’s starting point is that the euro is too systemically important to be allowed to break up. Like the larger banks, it has become too big to fail, and must therefore be propped up for fear of the wider economic damage if it went down in flames...
...Alongside the austerity and the supply side reform, the IMF will normally demand a substantial devaluation to give a short-term boost to competitiveness. Monetary activism can also be used, within reason, to ease the pain of the austerity.
These palliatives are denied to members of the eurozone, where to boot, programmes seem to be set more to satisfy the demands of German voters than the wider cause of economic stability and prosperity.
The IMF therefore finds itself ever more associated with the narrow self interest of German electioneering, an extraordinarily dangerous position for an international organisation to get itself into. It’s lucky that the sums involved in the Cypriot “rescue” are basically too small to matter, for this was a truly shameful bail-out that everyone knows from the outset won’t succeed in setting Cyprus back on its feet. The intention was more to punish than to redeem...
...Yet the IMF is in it up to its neck. Saving the euro at any cost seems to have become the IMF’s touchstone. What Asia and Latin America can make of an organisation which has become as beholden to the European elites as this one is anyone’s guess...
...Haircutting depositors among periphery country banks is therefore no longer seen as a sufficient degree of burden sharing. Rich depositors can escape such sanctions simply by shifting their euros into more solvent northern banks. So Germany’s Council of Economic Experts has suggested that some way of haircutting property wealth might be found too, even though this will induce further capital flight, trapping the periphery in even deeper depression. Is the IMF sheepishly to go along with this insanity as well? The way things are going, the euro will end up poisoning the IMF as comprehensively as its member states.
An "era of cheap mortgages is slowly coming to an end" and so is the "cheap money" enjoyed in recent years in the UK, the US and the eurozone, said financial commentator Louise Cooper.
She was explaining the significance of the changes in the bond market as 10-year UK bond yields have reached 2.56% - which is up by a third in a month...
Fed may be trying to engineer a sell off, the way they manage their fed speak is key to their intentions.