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IMF Managing Director change

Discussion in 'Financial Cents' started by ghrit, Sep 28, 2007.

  1. ghrit

    ghrit Ambulatory anachronism Administrator Founding Member

    Ex-French Official Picked to Head IMF

    Associated Press Writer
    633 words
    28 September 2007
    06:22 pm GMT
    Associated Press Newswires
    (c) 2007. The Associated Press. All Rights Reserved.

    WASHINGTON (AP) - The International Monetary Fund chose France's Dominique Strauss-Kahn as its new leader Friday to chart a new course for the 185-nation lending organization and restore its relevance in a world that seems to need it less and less.
    Strauss-Kahn, 58, a former Socialist finance minister, replaces Spain's Rodrigo de Rato on Nov. 1 and will serve a five-year term as managing director.
    The French official said in a statement he was "determined to pursue without delay the reforms needed for the IMF to make financial stability serve the international community, while fostering growth and employment."
    In the late 1990s, the IMF lent billions to countries stricken with financial crises while recommending unpopular belt-tightening policies that led one Third World president to dub it "the international misery fund."
    Lately, countries no longer are borrowing as often as they did, so funds for operations are down, staff cuts are imminent, and the agency may have to sell gold reserves to make ends meet. (emphasis mine - g. Anybody betting on the price of gold?)
    Countries with fast-developing economies and access to international capital markets, such as China and Brazil, no longer need the IMF, but it still runs lending programs for poorer nations, many of them in Africa.
    Under de Rato, the IMF has been trying to give more influence to the booming countries in its decisions while strengthening its monitoring of global trade imbalances and currency exchange rates.
    De Rato, who announced in June he was stepping down for personal reasons, pledged to work with Strauss-Kahn to ensure a smooth transition.
    The fund's 24 executive directors selected Strauss-Kahn by consensus, which means without a vote.
    Strauss-Kahn became the odds-on favorite for the job after securing the support of the United States and the 27-nation European Union. The other candidate was Josef Tosovsky, a former Czech prime minister and central banker, nominated by Russia.
    The French official in his statement said his candidacy derived legitimacy "from the very broad support I received, notably from emerging market and low-income countries," many of which he visited in the past few weeks as he campaigned for the post.
    Strauss-Kahn told the board last week, "It will be a hard task for all of us to rebuild the relevance and legitimacy of the organization, but I am prepared to do that, and I ask you to be prepared as well."
    Tosovsky was nominated by Russia in an apparent attempt to challenge a selection process that goes back to the founding of the IMF and World Bank after World War II. In that tradition, a European gets the top IMF post, and an American heads the bank.
    Early this year, the European Union supported the Bush administration's choice of Robert Zoellick, an American, to take the helm at the bank.
    Some member governments and aid groups have criticized the process as outmoded and have said the positions should be open to the most qualified candidates. They say a good time to change to that system would be 2012 when Zoellick and Strauss-Khan are scheduled to leave office.
    Tosovsky also made a presentation to the board and praised its decision to give China, Brazil, Mexico and Turkey greater says in IMF operations.
    Strauss-Kahn said because the head of the IMF must have the backing of the whole organization, he undertook a 60,000 mile (96,500 kilometer) trip to visit member nations, both large and small, "listening and learning from them.
    "That is why I am asking for broad support from the board," he said. "I don't want to be the candidate of the North against the South or from the wealthy against the poor."
  2. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    Looks like a buying opportunity will arise and then back up the price will go.
  3. Bear

    Bear Monkey+++ Site Supporter+++ Founding Member Iron Monkey

    Yup... between here and $800 looks for dips... and silver... well.... watch that too.... if you're at that point in your planning and preparations... stay flexible but be ready....

    Oh and yes... I know you can't eat it! so why bother right?....

    Because your dollars have already passed an all time low against a basket of world currencies and the stock market has already shown signs of panic.... not to mention inflation was already high even when the dollar was strong!
    In gambling, the "house" never loses... only you do... the stock market is no different... just don't throw a pathetic "Cramer Hissy Fit" when you suddenly find YOURSELF in the "House of Pain"....[booze]

    It's the "Slow Burn".... you won't realize what's happening and what happened until is too late... better check the horizon and start having those long "honest" talks with yourself.... this is only going to get uglier and uglier....

    But remember.... you can't eat gold and silver so its got absolutely no use and value[winkthumb]

    Dumb excuses I hear all the time for not paying attention during a party where you're being served "koolaid"... Overlook and downplay one important part of your plan and you might as well have not planned at all... I don't have time and sympathy for lazy ignorance, marginal awareness, euphoric denial and herd mentality...

    Lots going on out there... that isn't being talked about in one big picture that adds up to that "Perfect Storm"....
    But maybe that's it.... its not fun to talk about it... its not cool to think about it.... its not exciting to plan for it.... so why should you do anything "Smart" about it....

    There's plenty of "koolaid" being provided for everyone....[beer]

    Party on!!!!![LMAO]

    Don't worry... be Happy! [LMAO]

    The Economy is fine![LMAO]

    Everything is under control![LMAO]

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