Saturday, April 25, 2009

Billions in Bonds Coming from IMF & Fed

The International Monetary Fund and the Federal Reserve Bank are adopting new tools for dealing with the financial crisis. They include issuing hundreds of billions in bonds.

The IMF also has the ability to effectively print its own currency via strategic drawing rights. SDR's will be based on the dollar, the euro, the yen and the pound.

Back filling for the imploded shadow banking system is a huge job. New tools are needed to fill the ever expanding sink hole. How many trillions will it take?