More Capital for World Bank Signals More Global Trouble Ahead

EPJ has learned that, at the G-20 meetings to be held later this week in Washington D. C., the United States will call for significant increases in capital for the World Bank.

The World Bank continues to be used as a conduit by which global banks are bailed out of bad, generally sovereign, loans. The bailouts naturally come with severe restrictions for bailed out countries. However, the enforcement role of the World Bank and the IMF is something that is now understood at the street level in most countries that could be the subject of bailouts. This understanding means that the locals in most cases are not likely to quietly accept fiscal restrictions that are seen as largely the bailout of  banksters at their expense. How much civil unrest occurs as a result of anti-bankster sentiment is unclear. Things could get pretty ugly.

Bottom line: While government leaders are painting a hopeful picture of the economy, what needs to be paid attention to is not the happy talk, but the actions of global leaders which is all about re-stocking for more financial problems ahead.

G-20 Meeting of Finance Ministers in Washington, DC This Week

The Department of the Treasury today announced that Treasury Secretary Tim Geithner will attend the G-20 Meeting of Finance Ministers and meetings of the International Monetary Fund’s (IMF) International Monetary and Financial Committee (IMFC) and the Joint World Bank-IMF Development Committee (DC) in Washington, DC, April 23-25, 2010. Additional details regarding Secretary Geithner’s schedule will be released in the days ahead.

Friday, April 23, 2010
9:30 am
G-20 FINANCE MINISTERS AND CENTRAL BANK GOVERNORS MEETING
IMF Headquarters
Washington, DC


11:30 am
G-20 FINANCE MINISTERS AND CENTRAL BANK GOVERNORS FAMILY PHOTO
IMF Headquarters
Washington, DC


6:00 pm
SECRETARY GEITHNER PRESS CONFERENCE
Room B702, IMF Headquarters
Washington, DC

7:30 pm
IMFC-G-20 WORKING DINNER
IMF Headquarters
Washington, DC


Saturday, April 24, 2010
8:00 am
IMFC MEETING
IMF Headquarters
Washington, DC


Sunday, April 25, 2010
8:00 am
DC MEETING
World Bank
Washington, DC