IMF may need to “print money” as crisis spreads

This article at the Telegraph.co.uk by Ambrose Evans-Pritchard (who I believe is versed in Austrian economics) paints a bleak economic picture on the international scene.

“The International Monetary Fund may soon lack the money to bail out an ever growing list of countries crumbling across Eastern Europe, Latin America, Africa, and parts of Asia, raising concerns that it will have to tap taxpayers in Western countries for a capital infusion or resort to the nuclear option of printing its own money.

The nuclear option is to print money by issuing Special Drawing Rights, in effect acting as if it were the world’s central bank. This was done briefly after the fall of the Soviet Union but has never been used as systematic tool of policy to head off a global financial crisis.

The IMF can in theory create liquidity like a central bank,” said an informed source. “There are a lot of ideas kicking around.””

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