₦airaland Forum

Extract from: http://www.tinyqualityhomes.org/

World Bank is about growth. IMF is about stability. World Bank is for development projects in the developing world. IMF is about balancing the international financial system in both rich and poor countries [Greece is a recent recipient].

World Bank is your gym trainer - provides you stuff to grow strong. IMF is your doctor in emergency ward. They will try to bring you back to life & provide you advice on not eating that fatty food again. World Bank brings no stigma. IMF aid sometimes brings a stigma because it indicates that you have a disease that needs to be cured.

Both the organizations are for governments to borrow. You go to the World Bank when you want to build a dam or power plant or a road. You go to the IMF when you are so bleeped up that your currency is dropping like crazy. IMF comes and usually fixes stuff along with providing a mouthful of advice.

World Bank is a bank. Meaning it borrows money from investors around the world and then lends to the poor governments that are building projects that help them out of poverty.

IMF is a fund. Meaning it has a pool of money given to it by 182 member countries in the past and just lends out of that fund. It doesn't usually borrow new money.

Governments are like drunken monkeys. They always run the show in deficit and need a constant shot of debt. As long as they play by the rules, money keeps coming in to pay the deficit. However, the moment they attempt to default to their most powerful lenders, everything stops. Argentina and other countries that boldly declared that they would not pay to the IMF had to eventually kneel down and pay the loan with interest. Greece recently said they would "squeeze blood out of a stone" to repay the debt.

Here is what happens to a country that messes with the IMF:
1. Everyone else stops lending to that country. That would force the government to drastically cut back on expenses, leading to domestic riots.

2. Foreign investors would quit the stock markets and eventually even direct investments would vanish. That would ransack the stock markets and destroy domestic companies. More unemployment and more riots.

3. The currency would fall like a rock. Here is how gold and US dollar rose against the peso after its default in 2001.

4. When the currency falls that rapidly, the country would be unable to import essential goods. That would mean scarcity, poverty and riots.

5. Inflation would rapidly increase destroying savings and destroying wealth. More riots.

6. The riots and scarcity would destroy whatever remaining local companies.

7. The riots, currency and everything else would make the country and its leaders laughing stocks of the world.

SUMMARY: 1) IMF never forgets its debt.
2) If you don't pay back the IMF, the lender of the last resort to the world, then no one will lend you money. I mean, really, no one.


reader of http://www.tinyqualityhomes.org/

Interesting Mathematical Coincidence
http://www.tinyqualityhomes.org/tour-of-a-tiny-rustic-cabin-on-top-of-the-ozark-mountain/

Omo Sexy
http://www.tinyqualityhomes.org/tour-of-2018-tiny-house-log-cabin-park-model-rv-cbt39-3/

Still don't get what the protest is about

http://www.tinyqualityhomes.org/tour-of-a-small-cottage-house-is-it-as-good-as-a-tiny-house/