The euro zone’s rescue fund

Funny money, fuzzy maths

The IMF’s coffers are fuller, but the euro zone’s “firewall” is still flimsy

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Lazy farmer grows 10 bags of corn each year...but lazy farmer eats 20 bags of corn each year. How does he manage this? By borrowing the difference from the hard working farmer just to his North

Another "Economist" article stated: "The EU is demanding that Greek leaders add €325m of cuts" Actually the hard working farmer is just telling the lazy farmer that the amount of corn he eats must be equal to the amount of corn he grows.


It is shameless that over 70% of IMF funds are now going to the richest part of the world the eurozone while poor third world countries have to make do with the crumbs leftover after greedy Europeans have taken the biggest chunk.

It is grotesque that the Europeans have put pressure on India to contribute to the richest part of the world while millions live in dire poverty in India.

Truly shameless.

However ths won't prevent Europe's political & media elites from bragging about how much they care about the developing world which will be dutifully parroted by so many brainwashed European masses.

frankos in reply to emmafinney

Perhaps you should aim some of your spleen at 3rd world dictators who have squandered vast amounts of aid and offers of trade.
Sub Saharan Africa economies have failed mainly due to idiots like Mugabe and not the West.
BTW India has plenty of disposable income judging by the size of it's space programme

emmafinney in reply to frankos

So now the EU acts like third world dictators and take money from poor countries impoverishing the people even more in order to benefit the richest part of the world the eurozone?

There are millions of poor people in India and whatever disposable income they have should go to them, not the richest part of the world the eurozone.


This incompetent Lagarde is an absolute disgrace. Basically holding developing nations at gunpoint and demanding they hand over money to help save the French welfare state.

And the government of India actually contributed? Why are they not lynched yet by the people of India for this treason?

emmafinney in reply to mvr36

Because Lagarde has been promising the elites of the developing world more power in the IMF or to put it more bluntly bribing them with promises of more clout within the IMF.

IF she doesn't keep her promises, she might be in for a rude shock.
And if she does keep her promise, the europeans would lose a substantial power within the IMF to the likes of Brazil and India and can never use the IMF as their personal piggy bank to bailout european mistakes.

However being European she might try to get the USA to give up all its power in the IMF to keep her promises to Brazil and India. However she will also insist that the USA continue to be the largest contributor to the IMF without any power.

-PasserBy- in reply to emmafinney


You must begin your reasoning with the understanding that India, China, Japan and everyone else who contributed did so out of cold hard maths.

China & India give to the EU for the simple reason that if they don't and the EU Crumbles, they crumble. The EU is the single largest economical and globally integrated entity in the world, think of it as the Lehman Brothers of the Global Economy except larger. Re-call what happened when Lehman brothers fell? The world recoiled.


All this cost money and where is the money? A recent paper by Kathleen Eggleson, a research scientist in the Center for Nano Science and Technology (NDnano) at the University of Notre Dame, provides an example of a nanotechnology-related safety and ethics problem that is unfolding right now. The world of nanotechnology, which involves science and engineering down at billionths-of-a-meter scales, might seem remote. But like most new advances, the application of that technology to everyday experience has implications that can affect people in real ways. If not anticipated, discussed or planned for, some of those implications might even be harmful. The problem that Eggleson describes is that hospital-acquired infections are a persistent, costly and sometimes fatal issue. A patient goes in for one condition, say an injury, but ends up being infected by a microorganism picked up in the hospital itself. That microorganism might even have developed a resistance to conventional drug treatments. The solution is that engineers are developing new and innovative ways of coating medical materials with nano-sized particles of silver, an element that has long been known for its antimicrobial properties. These particles are being applied to hard surfaces, like bedrails and doorknobs, and to fabrics, such as sheets, gowns and curtains, by a growing number of medical supply companies. And these new materials are proving effective. "Nanosilver coatings have made life-saving differences to the properties of typical hospital items," Eggleson says. "Just this last December, a textile made by a Swiss company was the first nano-scale material approved as a pesticide by the EPA."I thank you Firozali A.Mulla DBA


... put the British xenophobes' talk of a "bailout fund" for the EU in perspective, really.


As far as the rescue fund is concerned, we would think it is "fuzzy money, funny maths".

Pledges are pledges, there would be no 100% commitments per se. One doubts the IMF's coffer could be that fuller. In economics, normal maths does not often work. (btt1943, mtd1943)


I am very much interested in the VETO.Is this the magic wand that the president waves and says OK citizens I am here to VETO the school fees. The reason I ask is we in sub Sahara states have to to do what we are told to do, or we are in the cooler. I am coming to the money. When we give a promise we will pay a smart word conned as pledged some how fails and then what happens? I am now talking of the Tsunami that had pledges , promises, but When there was a Tsunami, there was a pledge a smart word for promises. Lots came and said I will pay this much , Oh poor people they are suffering , we must do somethings for them, we pledge this much rice, sugar, wheat , barley , maize, coffee, cash, bread , in the end only few gave and to date Achey still is the grip of poverty please read this In the tsunami's aftermath, the inadequacies of governmental and privately funded aid and the challenge of rehabilitating devastated ecosystems quickly became apparent. With this volume, Karan and Suhbiah illuminate the need for the development of efficient, socially and environmentally sustainable practices to cope with environmental disasters. They suggest that education about the ongoing process of recovery will mitigate the effects of future natural disasters. Including maps, photographs, and statistical analyses, The Indian Ocean Tsunami is a clear and definitive evaluation of the tsunami's impact and the world's response to it.estimated 225,000ùwere buried in mass graves; Even the financial offer made by Thai Prime Minister Thaksin Shinawatra shortly after the deadly tsunami of December to kick-start a fund to build a warning centre has not been matched by the 11 other countries hit by that tusnami. There you are . Not many paid. When this happens why no VETO from any? Do poor stay poor and rich have the magic wand of VETO, You better do that or I will VETO "Down With Tyranny!: WILL VITO TRY TO STAY IN CONGRESS ...
down with
May 8, 2008 ... WILL VITO TRY TO STAY IN CONGRESS CLAIMING HE KNOWS MORE ABOUT FAMILIES BECAUSE HE HAS TWO? From the Google Pressure is mounting ... I thank you Firozali A.Mulla DBA


Challenge Germany to leave the EURO
Germany is obviously an obstacle to a more growth oriented development in Europe. Why don´t turn the tables upsidedown and ask Germany to leave the Euro. The result would be a most needed devalution of the Euro, opening the way for Europe´s ailing economies to start growing. And force Germany to face the consequences of their own policies, without the help of a fundamentally undervalued currency. Börje Widerberg

flymulla in reply to widerberg

That is what I am on, how do you do that when you have no cash? Take the Benz and V/Ws . Many times I wonder why we use the harsh words when soft ones can do the rick, Can we please, may I please, will you please ask Germany to leave the EURO if Germany does not see our point of view and that they are strong and we are weak and that this weak put and unbalance in our cash flow. Please. I will appreciate this. Germany is in the middle of the region, cut this you have few branches that may not want to trade with you. Would you want that or let Germany stay on we keep quite. Will that work?That UK has to decide not France as UK to me is the financial hub, I thank you Firozali A.Mulla

Germanambassador in reply to flymulla

Perhaps a withdrawal of Germany from the Euro could happen quite sooner as previewed.
It just depends now on the new French president how much he will enforce a disbanding of Europe.
The key for the end of the Euro is in Paris and Amsterdam:)
The rest in regard of Spain and Italy will do the rating agencies.

Already now all rating agencies are realizing a complete break-down of the Euro and the European Union.
I am sure it is only a matter of time until this European nightmare will be over.

It is not the job of Germany supporting the rest of the EU.

I have full confidence into the big rating agencies which make an excellent and damned good job by staying realistic.


DullerBill$unknowingly provides the solution to the euro zones' problems. Yes- Germany wants a captive euro market and to arrive at that objective she will insist that fiscal governance is rigidly adhered to. Step by step, through crisis after crisis, she will apply the necessary medicine - bailing out the bankrupt states on condition they follow the required governance rules to finally forge a federal united democratic euroland.

flymulla in reply to camsoc

You remind me of Microsoft in 80s. When there were small corporations Bill gates bought these at a cabbage price. When put pressure on the Quick Books or now Power Books the Intuit accounting package, it had to go to the courts and Bill gates or rather not getting personal Microsoft lost. Microsoft has a reputation of coming and going in the courts. Is that what we want to do , go to the World Trade "THE HAGUE" and arbitrate (majority from USA?)I thank you Firozali A.Mulla These are open for any discussions or may be zapped


You jest while we are talking USA and India ..NEW DELHI: US companies are poised to sign defence deals totalling $8 billion with India, US Ambassador Nancy Powell said on Friday at her first public speech since arriving in New Delhi this month. Powell did not specify which companies she was talking about or when the deals would be signed, but embassy officials said she was referring to negotiations that include about a dozen Apache helicopters along with engines for Indian jets. "We are poised to sign an additional $8 billion in direct commercial and foreign military sales," Powell said. "As we share more common equipment, our bilateral defence ties will become stronger." India is the world's largest arms importer and plans to spend close to about $100 billion over the next 10 years to upgrade its largely Soviet-era equipment. US companies including Boeing Co, Lockheed Martin Corp and Raytheon Co are some of the contractors looking to grab a share of India's planned military spending. Industrial conglomerate Honeywell International Inc. is offering engines for the Indian Airforce's Jaguar fighter aircraft. Powell said improving bilateral trade and investment was her main objective as ambassador, mentioning US concerns about tariff and non-tariff barriers and a new retroactive tax law as obstacles in the Hoping to get a bigger slice in the pie of massive Indian defence modernisation efforts, the US has said the level of its willingness to share defence technologies with India has never been higher than it is now. relationship. I thank you Firozali A.Mulla DBA


As yout aticle implies these tactics may deter confidence and encourage speculation.
Of course we need start from where we are but underlying reality of The Doha round and China's accession is the rich countries could hvae cheap goods or high welfare but ot both during the inevitable bust part of the cycle.
The Euro zone has an economic strategy shackled to albeit worthy political goal.TThis leaves their members trying to outwit the market in slow moving train wreck that will have casualities regardless.
If Germany wants a captive market Eurobunds and Eurowide fiscal governance rigidly adhered to seems requisite.

Aprt from under mining confidence time consuming endless bailouts re-financing are merely re-arranging the deck chairs on Monica Lewinsky.Like so many idealistic projects I fear it will end in tears.
Hollande's election will not encourage stability and ageneration PIGS will stay in the slough,while LatinAmerica,Asia-Pacific arise.

A major keystone in the flawed castle that is Euroland is the democratic deficit.A popularly elected EU president ,a truly accountable and representative Parliament might be able to apply the medicine and sugar thepill with real rights of movement and justice.
The corollary of acentury of European incompetence from theKaiser onwards will hinder Europe,USA and the wider world and Schumanns dream may be rendered cobblers.


To the hedgefunders everywhere the fuller the IMF war-chest, the more they want to rob the piggies of their tasty swill from IMF.

Jasiek w japonii

The coffer may be fuller as that of the IMF but still utterly insufficient - perhaps by one digit in terms of the US dollar - if the Fund aspires to metamorphose into the international clearing union which John Maynard Keynes advocated at Bretton Woods but was then refused by the United States behind which were what we would today call investment bankers.

Almost the same is said of the EFSF. If the European facility, perhaps via the ESM and then the European clearing union, aspires to become the coffer of the European fiscal union to be formed in the future, it needs much much bigger capital.

flymulla in reply to Jasiek w japonii

I am sorry but the economy does not run on Adams, IMF, Keynes, it is supply and demand that creates the liquidity of goods , perishable , static, movable, useful, satisfactory, law of diminishing returns supply, labour man or kids,animals to carry the good in the mountains or the last barter, you see when you look at all, the cash id hard to understand easy to use but we have no idea how we use then we complain, I end by saying man is most complicated thing the creator made I thank you Firozali A.Mulla DBA Law goes with economics

flymulla in reply to Jasiek w japonii



The firewall is even less solid than in the article stated. Reason being a circular relationship between beneficiaries and guarantors: Italy, Spain & Co. are guarantors of themselves! This is obviously and inherently ridiculous leaving Germany as the only real guarantor of the whole scheme - no wonder Germans are reluctant to raise any firewall at all.


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