Bad bad USA is not supporting IMF, wah wah

[JSOP]

https://www.ft.com/content/c5083dc2-286f-4784-bc51-a8d34f88e86f

I just have two questions:

1. Last time I checked, IMF stands for "International Monetary Fund" and not "US Monetary Fund" so why are they bashing USA for this "Anti-Beijing hysteria"? Plenty of countries out there are "pro-beijing" I am sure. Why isn't this "International Monetary Fund" going to these "pro-beijing" countries to ask for money?

2. I thought China is supposed to be the 2nd largest economy in the world, second to United States now and larger than all of the European countries now. WHY is it still asking for IMF for support? It's like Elon Musk still going home and asking his parents for allowance. Shouldn't China be contributing money to IMF instead?

Judging from how this article is written, it looks like IMF and WHO are not the only organizations that China has managed to exert its influence.

 

[maxinger]

empire / superpower come and go


Persian empire
Han dynasty
Umayyad Caliphate
Mongol empire
Ottoman Empire
Spanish empire
Russian empire
British empire
US superpower
next China superpower?
next next ??

 

[morganist]

https://www.ft.com/content/c5083dc2-286f-4784-bc51-a8d34f88e86f

I just have two questions:

1. Last time I checked, IMF stands for "International Monetary Fund" and not "US Monetary Fund" so why are they bashing USA for this "Anti-Beijing hysteria"? Plenty of countries out there are "pro-beijing" I am sure. Why isn't this "International Monetary Fund" going to these "pro-beijing" countries to ask for money?

2. I thought China is supposed to be the 2nd largest economy in the world, second to United States now and larger than all of the European countries now. WHY is it still asking for IMF for support? It's like Elon Musk still going home and asking his parents for allowance. Shouldn't China be contributing money to IMF instead?

Judging from how this article is written, it looks like IMF and WHO are not the only organizations that China has managed to exert its influence.

Last time I checked, IMF stands for "International Monetary Fund" and not "US Monetary Fund" so why are they bashing USA for this "Anti-Beijing hysteria"?

Most Countries are expected to pay into the IMF as a sort of global insurance or support organisation, because it helps to restructure government debt. It is like paying into a short term loan programme governments can use.

WHY is it still asking for IMF for support?

The reason is they have a lot of government debt products that have a maturity payment. This means the principal amount of the debt has to be repaid at the end of the bond period. Governments often struggle to raise the capital to do this because people are not interested in buying newly issued government bonds at the same amount that the maturity payment is for. So to get the money they need to pay the maturity payment, which is often colossal amounts of money they have to borrow it from the IMF because they cannot raise it through any other means. This means China must be approaching a large maturity payment date and cannot sell enough new bonds to raise the capital they need, so they have to use the IMF instead. It also means that the government is not longer capable of funding itself from its own operations and some people see it as a form of government insolvency. Has that answered your question?

 

[JSOP]

Last time I checked, IMF stands for "International Monetary Fund" and not "US Monetary Fund" so why are they bashing USA for this "Anti-Beijing hysteria"?

Most Countries are expected to pay into the IMF as a sort of global insurance or support organisation, because it helps to restructure government debt. It is like paying into a short term loan programme governments can use.

Hence my question: Why is this article singling USA out for this "Anti-beijing" hysteria" when USA is not the only country contributing to the IMF and is certainly not the only country paying out money? And honestly with the way China is behaving on the world stage right now, I cannot imagine that USA is the only country that's having "anti-beijing" sentiments.

WHY is it still asking for IMF for support?

The reason is they have a lot of government debt products that have a maturity payment. This means the principal amount of the debt has to be repaid at the end of the bond period. Governments often struggle to raise the capital to do this because people are not interested in buying newly issued government bonds at the same amount that the maturity payment is for. So to get the money they need to pay the maturity payment, which is often colossal amounts of money they have to borrow it from the IMF because they cannot raise it through any other means. This means China must be approaching a large maturity payment date and cannot sell enough new bonds to raise the capital they need, so they have to use the IMF instead. It also means that the government is not longer capable of funding itself from its own operations and some people see it as a form of government insolvency. Has that answered your question?

Not USA or anybody's problem that a country cannot manage its debt payment especially when it's making so much money around the world. I am not sure if China is really in so much financial trouble as to the point that it's actually asking for help from IMF as this article just says China is mounting pressure on World Banks to get favourable ratings. But if it really is, how does it think it will get USA to open its wallet when it's still in a bitter trade dispute with USA? You can't bite the hand that's about to feed you. LOL