No, not like Zimbabwe.
Tax cuts for the rich, hurrah!
- Thread starter JohnD
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I assume that is this lot
How we are funded
www.nlf.uk.net
IMF SDR's
Currencies included in the SDR basket have to meet two criteria: the export criterion and the freely usable criterion. A currency meets the export criterion if its issuer is an IMF member or a monetary union that includes IMF members, and is also one of the top five world exporters. For a currency to be determined “freely usable” by the IMF, it has to be widely used to make payments for international transactions and widely traded in the principal exchange markets. Freely usable currencies can be used in Fund financial transactions.
Sounds like there would be terms attached in our case. Bit of history on the subject in the link as well.
The collapse of the Bretton Woods system in 1973 and the shift of major currencies to floating exchange rate regimes lessened the reliance on the SDR as a global reserve asset.
Special Drawing Rights (SDR)
The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. To date, a total of SDR 660.7 billion (equivalent to about US$943 billion) have been allocated. This includes the largest-ever allocation of about SDR 456 billion approved...
www.imf.org
This probably explains that. The SDR can not be freely used. Their decision. Actually you may find comments about some aspect of terms when poorer countries apply for a loan. Read austerity.
Don't they have a fiat floating currency too?
Of course we have better infrastructure and don't have rampant corruption and idiots running our financial system so the parallels stop quite quickly.
Your assumption is incorrect.I assume that is this lot
The IMF lend not donate so ?????????????????How we are funded
IMF SDR's
Currencies included in the SDR basket have to meet two criteria: the export criterion and the freely usable criterion. A currency meets the export criterion if its issuer is an IMF member or a monetary union that includes IMF members, and is also one of the top five world exporters. For a currency to be determined “freely usable” by the IMF, it has to be widely used to make payments for international transactions and widely traded in the principal exchange markets. Freely usable currencies can be used in Fund financial transactions.
Sounds like there would be terms attached in our case. Bit of history on the subject in the link as well.
The collapse of the Bretton Woods system in 1973 and the shift of major currencies to floating exchange rate regimes lessened the reliance on the SDR as a global reserve asset.
Special Drawing Rights (SDR)
The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. To date, a total of SDR 660.7 billion (equivalent to about US$943 billion) have been allocated. This includes the largest-ever allocation of about SDR 456 billion approved...www.imf.org
This probably explains that. The SDR can not be freely used. Their decision. Actually you may find comments about some aspect of terms when poorer countries apply for a loan. Read austerity.
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NLF may stand for: National Liberation Front (disambiguation) · Viet Cong · National Labour Federation (Pakistan) · National Liberal Federation
??? Who or what then.
whataboutery
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If we issue our money as we need it, why do we need to borrow any?
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we could end up like Zimbabwe - we must have the most incompetent pair ever running our country.
and to think we could be heading towards a nuclear conflict.....
Good question.
Ask yourself this: why would the UK govt ever have to borrow the currency that it, and only it (and it's authorised agents) is legally allowed to create?
The simple answer is, it doesn't need to 'borrow'it's own currency in order to be able to spend and ... it doesn't.
The 'borrowing' people refer to when they talk about 'govt borrowing' is HMT issuing securities i.e. treasury bills and Gilts.
Govt spending and gilt issuance are not operationally dependent.
HMT issues securities by political choice, there's no legislation which compels it and there's no good reason to do it.
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And the IMF is not involved ?
Involved in what?
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See posts 172, 174, 175, 176
IMF is only involved in posts 175 & 176.
If you read the posts you listed, you'll see.
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Ok, so we are borrowing from ourselves ( or more likely countries or business' around the world), with a debt to GDP of around 96/97% ?
The bonds we sell can be owned by anybody in the world.
And the more money we (digitally) print, the less it is worth?
The IMF is not involved.
Not going well is it? Makes you wonder why the IMF is making statements then.
It's a good job we are not going under.
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Lime
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