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Posts Tagged ‘bailout’

Euro zone boosts powers of rescue fund to aid Greece, Ireland, Portugal

July 22, 2011 Comments off

theglobeandmail

Greek Prime Minister George Papandreou, left, European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso speak after the EU summit Thursday in Brussels. - Greek Prime Minister George Papandreou, left, European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso speak after the EU summit Thursday in Brussels. | AFP/Getty Images

Euro zone leaders agreed at an emergency summit on Thursday to give their financial rescue fund sweeping new powers to help Greece overcome its debt crisis and prevent market instability from spreading through the region.

French President Nicolas Sarkozy said leaders of the 17-nation currency area had agreed to ease lending terms to Greece, Ireland and Portugal, while private investors would voluntarily swap their Greek bonds for longer maturities at lower interest rates to help Athens.

US raised debt ceiling 102 times – economist

July 17, 2011 Comments off

rt.com

President Obama has warned the US is running out of time to deal with its financial troubles – the Congress must raise the current $14.3-trillion debt ceiling again. And as Professor Rodrigue Tremblay told RT, this has become a tradition in the US.

­The US repeatedly gets away with raising the debt ceiling, Rodrigue Tremblay told RT.

“This system that the US has, has been in place since 1917. They raise the debt ceiling each year, they have done it 102 times; eight times under George W. Bush alone. Most countries do not run their Read more…

Bailout plan roils Greece’s leaders

June 17, 2011 2 comments

boston

Greece was wracked by political turmoil yesterday as the embattled prime minister faced down a party revolt over new austerity measures — a bitter dispute that forced the EU to hint at new loans so Greece can fend off a summer default.

Prime Minister George Papandreou has struggled to garner support for a new package of $39.5 billion in spending cuts and tax hikes demanded by the European Union and the International Monetary Fund, which last year granted his debt-ridden nation $155 billion in bailout loans.

But the measures have sparked riots on the streets of Athens and open criticism from his own Socialist lawmakers. Papandreou’s desperate efforts to form a coalition government with the opposition conservatives collapsed Wednesday, and the Read more…

What You Need to Know About the International Monetary Fund

May 17, 2011 1 comment

wealthcycles

The International Monetary Fund is in the news again for scandals of a more personal and dubious type—the arrest of fund chief Dominique Strauss-Kahn over allegations of sexual assault. This comes at a time when the IMF can least afford to be embroiled in political scandals—the global recovery is tenable at best, and the combination of rising prices, declining credit, and falling faith in fiat currencies is becoming a cocktail for disaster. But this does give us a great opportunity to help people understand what the IMF does, who pays for it, and how it works.

What the Heck is it?

Most people in the world couldn’t describe what the IMF does; yet if your country is one of the 187 member countries, you have paid for it. ABC World News says this:

The Fund has deposits from member countries – commonly called “quotas” – totaling some $340 billion, with additional commitments for about $600 billion from member governments should the funds be needed.
Quota requirements are determined by the size of the member country’s economy. So the United States, with a $14 trillion GDP, is the biggest contributor with about 18 percent of the quotas.

And what do they do with all that fiat currency? To answer that, we need a little history lesson.

The IMF was founded after World War II during the beginning of the Bretton Woods system. In the Bretton Woods system, exchange rates were Read more…

EU Ministers OK $110.8 Billion Portugal Rescue

May 16, 2011 1 comment

European Union finance ministers cleared the way for Portugal to receive 78 billion euros ($110.8 billion) in aid, making it the third euro-area country to fall back on official loans.

The EU’s two bailout funds, the European Financial Stability Facility and European Financial Stabilization Mechanism, will each provide one-third of the assistance, while the International Monetary Fund will contribute the rest, the EU said in a statement after a unanimous vote in Brussels today.

Finance ministers called Portugal’s planned budget cuts “ambitious but credible,” according to the statement. The aid program will run for three years.

Portugal follows Greece and Ireland in requesting a bailout from the EU and International Monetary Fund. Politicians are struggling to convince investors that 256 billion euros in aid to the three countries will be enough to stamp out Europe’s debt crisis and prevent the euro region’s first restructuring.

Portuguese Finance Minister Fernando Teixeira dos Santos said before the meeting he was confident of approval because “all the issues that we had to clarify were clarified.” German Finance Minister Wolfgang Schaeuble had also been upbeat about Portugal’s aid request.

The meeting was clouded by the May 14 arrest of IMF Managing Director Dominique Strauss-Kahn on Read more…

Signals Spain may seek bailout spelling disaster for eurozone

May 16, 2011 Comments off

rt.com

Violent protests against austerity cuts have broken out in Spain, as the country struggles to deal with record-high unemployment signaling that Madrid could possibly be next in line for an EU bailout.

Across the border, Portugal’s crumbling economy is desperate for a €78 billion rescue package. Read more…

Pressure on Portugal After New Credit Downgrade

March 16, 2011 Comments off

nytimes.com

LISBON — Portugal’s borrowing costs pushed higher after Moody’s downgraded the country’s credit rating, stoking the pressure on the country’s beleaguered minority government.

The yield on Portugal’s ten-year bond rose 0.04 percentage point to 7.44 percent. The equivalent yields for Greece and Spain, two other euro countries struggling with high borrowing levels, were down modestly.

Moody’s Investors Services cut the country’s rating by two notches to A3 late Tuesday, saying the debt-stressed country is struggling to generate growth and faces a tough battle to restore the fiscal health needed to calm jittery financial markets.

Prime Minister Jose Socrates said late Tuesday he would quit if Parliament doesn’t consent to his government’s latest batch of contested austerity measures.

Portugal aims to raise up to €1 billion in a sale of Read more…

Obama Seeks $53 Billion To Fund ‘Secretly’ Bailed Out GE For High-Speed Rail Construction

February 9, 2011 1 comment

 

 

obama high speed rail system promise to take money from people sad hill news

After secretly bailing out GE and forcing the use of its mercury-laced light bulbs on American citizens, then calling on GE’s chief Jeffrey Immelt to head the president’s economic recovery advisory panel, Obama is going to make sure his bankrupt partners in crime fully benefit from the $53 billion collected from taxpayers by subsidizing GE to build a high-speed-money-burning rail system that no legitimate private sector business would ever touch.

With US Government hemorrhaging $ trillions each year and US Government-run Amtrak hemorrhaging $ billions, what could possibly go wrong?

I’ll answer that. Spending money we don’t have is putting America on the fast-track to global servitude.

(Bloomberg) President Barack Obama will ask Congress next week to Read more…

Ireland’s Titanic Bailout at Risk, Iceland looms ahead

January 24, 2011 Comments off

The announcement by Brian Cowen that he was resigning as the leader of the Fianna Fail party, but is going to stay on as Taoiseach (Prime Minister) until the March 11 election, has put the Irish bailout into question.  The November bailout of the Irish economy consisted of a series of different financing packages being combined into a larger total.

The first funds available under the bailout were provided by the raiding of the Irish retirement fund by its bankers.  The next steps were to be funded by the EU and IMF funding sources, once the people of Ireland were legally subjected to the bailout requirements.  The bailout never made it to a full vote before the collapse of the Fianna Fáil party.

This leaves Ireland in the unique position of being able to reclaim its future, by denying its past.  The citizens of Ireland have not accepted the bailout.  The coalition is not expected to be able to put the matter to a vote before the election.

“All we know is we are going to get an election on or before March 11 but that is about it,” said Micheal Marsh, professor of politics at Trinity College Dublin, calling the events of the past week “bizarre.” Read more…

Categories: Ireland Tags: , , , , ,

Why Americans are so angry

January 10, 2011 1 comment

By Linda Feldmann, / Staff writer
posted March 8, 2010 at 3:46 pm EST

Heather Gass always felt she had to suppress her conservative views, living as she did in the liberal San Francisco Bay area. A year ago that all changed.

CNBC financial reporter Rick Santelli had just blasted the Obama administration’s plan to help homeowners facing foreclosure, and called for a “tea party” protest in Chicago. The idea caught fire around the country, and soon Ms. Gass, a 40-something real estate agent, was organizing weekly street-corner demonstrations in her hometown of Orinda, Calif.

Her focus was fiscal discipline, aimed not just at the $75 billion mortgage bailout but also the administration’s $787 billion stimulus package and President Obama’s budget. She remembers her first signs well: “Stop printing money” and “China owns us.” By Congress’s summer recess, when opposition to Mr. Obama’s healthcare plan burst forth, she had 100 people protesting on street corners, she says.

Fast-forward to February 2010. Gass is still out there every Friday, her 6-year-old son in tow. Political operatives are calling her up for advice. Her roster of influential tea party activists – “Heather’s list,” as local politicos call it – is creating buzz. “We’re not dangerous,” says Gass. “We’re your neighbors. But we’ve been underground. We’re not underground anymore.”

Gass says she’s beyond anger over the direction of the country and is in “action mode.” Whatever it’s called, that intensity of feeling – the passion that led her to travel last month to the Tea Party Convention in Nashville and that drives her to tears when she worries out loud about the America her son’s generation will inherit – is unmistakable. Read more…