Wednesday, December 10, 2014

IMF Reforms Bypassed by Congress - Now Will the IMF Bypass Congress?

It appears Congress will recess without passing the 2010 IMF reforms or delivering the $100 Billion in funding that an earlier Congress had approved. While it seems Congress has bypassed the reforms, there could be "alternative options" at some point to try and bypass Congress. Here is our earlier post on that and here is an article Jim Rickards posted on his twitter page about it as well.


Related articles that readers might find of interest that we posted here are:

In 2015 we will follow this to see if the IMF comes up with some way to get the reforms implemented without the US Congress having to approve them. If that doesn't happen, we expect that the IMF will include the Yuan in the basket of currencies that makeup the SDR. 

For the IMF to become the global "lender of last resort" and some kind of global central bank, they will need more funding reserves and the cooperation of the BRICS nations. We have said many times here that without a crisis, that may not happen any time soon due to the makeup of the current US Congress. If there were another financial crisis though, we can expect things might change sooner since the crisis will probably dwarf the Fed's ability to deal with it this time. We will follow it here in 2015.

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