Dear Jim,

It seems Iceland, Hungary, Ukraine, Latvia, and Pakistan and now Belarus have all gotten loans from the IMF. What happens when there is no money left at the IMF?

Best,
Ciga Big Tatanka

IMF agrees $2.5bn for Belarus
Belarus has secured an emergency loan of $2.5bn (£1.74bn) from the International Monetary Fund.
By Ambrose Evans-Pritchard
Last Updated: 8:48AM GMT 01 Jan 2009

It becomes the sixth country after Iceland, Hungary, Ukraine, Latvia, and Pakistan to need a rescue since the crisis began.

The ex-Soviet state – still run by strongman Alexander Lukashenko – has suffered a run on its foreign reserves as the economic downturn engulfs Eastern Europe. The country’s key exports are potash fertilizer and oil products, both hit hard by the commodity crash.

The IMF’s chief, Dominique Strauss-Kahn, said the tough terms of the bail-out include "strict public-sector wage restraint" and cuts in state spending. Russia has pledged a further $2bn.#

More…

Dear CIGA BT,

The answer is quite simple. The US Fed will buy the 6 or more worthless loans and print more US dollar paper to re-paper the papered out IMF.

The Fed is the largest hedge fund in town and is loaded to the gills with worthless paper. Who knows, the Fed then issues bonds and buys more crap. The dollar has already gone wacko in tune with the Fed’s whacked out inventory, turning the dollar into a spinning wheat fly in the fall season that goes 9000 rpm in a blurred circle and dies, totally worn out by making its central bank a toxic land fill.

Even a nit-wit has to see where all this is going.

There is now no way out of the web of messes our masters have woven.

Happy (?) New Year,
Jim