Quota Increases, Gold, and SDR Allocations
By JC Collins
Though not reported elsewhere, the statements by International Monetary Fund Managing Director Christine Lagarde yesterday regarding the failure of the US congress to ratify the 2010 Quota and Governance Reforms are explosive.
“Now, the IMFC, which is one of the key governing institutions of the IMF, has decided that if by the 15th of September this matter is not resolved satisfactorily, then we have to select the interim step that we will take forward in order to make sure that there is an element of down payment on the quota increase.”
The speculation of what is meant by “element of down payment” has given POM readers much to think about.
Before I allow myself to speculate, let’s review some facts.
First, there is little reason, considering the delays over the last 5 years, to expect that there will be a reasonable resolution to this matter. The impasse between the Executive Branch and Congress over the supporting legislation around the 2010 Reforms is nearing an end.