in Basel, Switzerland, is the head of the central banks. The IMF is quite limited in what it can do in a situation such as this; since, according to the article, it only has $200 billion that it can loan out. That's not even going to make a dent in the $1 quadrillion of toxic derivatives that haven't even started to unravel. Besides, as Dr. Paul is so fond of reminding us, you can't solve a credit crisis with more credit. Any more intervention/money creation is only going to make the matter worse and ensure that complete financial collapse occurs--i.e. all paper assets, and currencies will return to their intrinsic value, zero.
Actually, the Bank of International Settlements
in Basel, Switzerland, is the head of the central banks. The IMF is quite limited in what it can do in a situation such as this; since, according to the article, it only has $200 billion that it can loan out. That's not even going to make a dent in the $1 quadrillion of toxic derivatives that haven't even started to unravel. Besides, as Dr. Paul is so fond of reminding us, you can't solve a credit crisis with more credit. Any more intervention/money creation is only going to make the matter worse and ensure that complete financial collapse occurs--i.e. all paper assets, and currencies will return to their intrinsic value, zero.