think the circular route is going to work out something like this:
a) the IMF puts up whatever funds are eventually deployed to Brazil
b) it turns to its members, including the US for their respective share of contributions. In the old days, they could also issue supranational money of their own, by way of SDRs, I'm not sure if they still can, if so of course, everyone gets away scot-free, effectively the 'piper' doesn't have to be paid.
c) as for the US contributions which need to be funded, the Treasury immediately issues more bonds during its weekly auctions, and the happy Chinese, Japanese, Taiwanese, Korean and Arab governments, pension funds, private investors and for good measure, hedge funds everywhere subscribe for them.
It seems, this cycle has been either going on for a long time, or will go on forever from here on, since the bailout will not stop with Brazil....can someone clarify why this thing could be a 'freebie' for the US of A.
In this circle of capitalism-free market-open trade-democracy game, who is the ultimate bag holder? The good old reliable and stupid tax paying J6P of USA?
So in effect, these top institutional crooks (Citi and JPMorgan and others), gamed the US government, via the IMF route, and hence the ultimate bag holder J6P's of USA to pay for their exposures in Brazil?
I am trying to reason this out as to why their stocks got boosted since this announcement.
Of course the main show is "we cannot let this bankruptcy bankrupting yet another bankrupt idea/country" by our beloved and belowed politicians. |
