Monday, October 27, 2008
In an article entitled "IMF may need to 'print money' as crisis spreads", the Telegraph reveals that the IMF has the power to create money just like the Federal Reserve:
"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.'"