The New World Order: Is bush tripping?

[rtwngAvngr]

Im watching Bush on tv and he's talking forgiving loans, issues grants instead of loans, redistributing the world's wealth, basically.


Wow. Now he just talked about eliminatign all tariffs globally, that's cool.

Interesting speech. Definitely. So far.

 

[rtwngAvngr]

If loans from the IMF are forgiven, who takes the loss?

 

[Nuc]

Im watching Bush on tv and he's talking forgiving loans, issues grants instead of loans, redistributing the world's wealth, basically.

That's commie/lib stuff. Good thing he's not on this board or you guys would drill him a new one!
:moon4:

 

[rtwngAvngr]

That's commie/lib stuff. Good thing he's not on this board or you guys would drill him a new one!
:moon4:

I guess forgiving the loans is the smartest move politically, considering they were probably NEVER going to be paid back in the first place.

 

[Said1]

If loans from the IMF are forgiven, who takes the loss?

The Bank itself. The money comes from contributions from members, based on quotas. I think members are paid interest based on holdings (see Special Drawing Rights link). Although I'm not entirely sure what happens inthe case of debt relief, I think their interest payments might be affect somehow.

The quota system
Each member of the IMF is assigned a quota, based broadly on its relative size in the world economy, which determines its contribution to the IMF’s financial resources. Upon joining the IMF, a country normally pays up to one-quarter of its quota in the form of widely accepted foreign currencies (such as the U.S. dollar, the euro, the yen, or the pound sterling) or Special Drawing Rights (SDRs). The remaining three-quarters is paid in the country’s own currency.

Quotas are reviewed at least every five years. The quota review that was concluded in 1998 led to a 45 percent increase in IMF quotas to SDR 213 billion (about $327 billion as of end-February 2005). The review concluded in January 2003 resulted in no change in quotas.

http://www.imf.org/external/np/exr/facts/finfac.htm

 

[Said1]

I guess forgiving the loans is the smartest move politically, considering they were probably NEVER going to be paid back in the first place.

They're almost like credit cards.....meet the minum payment (concessions) and your can raise you liimit!

 

[Nuc]

I guess forgiving the loans is the smartest move politically, considering they were probably NEVER going to be paid back in the first place.

A dollar in the third world is worth a lot more than a dollar here. In the local economies those debts are staggering. Since they probably can't pay the debts back even if they want to, yeah.

 

[rtwngAvngr]

The Bank itself. The money comes from contributions from members, based on quotas. I think members are paid interest based on holdings (see Special Drawing Rights link). Although I'm not entirely sure what happens inthe case of debt relief, I think their interest payments might be affect somehow.



http://www.imf.org/external/np/exr/facts/finfac.htm

I knew you would have leads on this one!

You kick so much ass on such a consistent basis that it's nearly ridiculous!

Thanx!