( Economic Hitmen , accompanied by US military ... )
The Ebola Epidemic Silver-Lining: IMF Bailouts For Everyone
Submitted by Tyler Durden on 09/15/2014 21:04 -0400
Never waste a good crisis. While we already knew a major reason for The West chasing into Africa was to leverage its relatively low credit levels as the last bastion of Keynesian-stimulus-hope in the world(estimated at between $5 and $10 trillion in secured debt, using its extensive untapped resources as first-lien collateral). And so it is little surprise that, as The WSJ reports, The International Monetary Fund on Thursday warned the West African Ebola epidemic requires a "large scale" global intervention to control a crisis that is ravaging economies in the region. All three major Ebola-suffering countries were already in bailout programs ($200mm loan in 2012 for Guinea, $100mm loan for Sierra Leone, and $80mm credit facility for Liberia)but with the "world community taking forever to respond," The IMF is happy to step in and secure some assets / lend over $100mm more to each nation to fill financing gaps.
The International Monetary Fund on Thursday warned the West African Ebola epidemic requires a "large scale" global intervention to control a crisis that is ravaging economies in the region.The IMF, the world's emergency lender, said it is in talks to boost bailouts for Sierra Leone, Guinea and Liberia as the disaster slams economic output and overwhelms government financing."Beyond the human toll that this outbreak is exacting, the Ebola outbreak looks set to cause significant harm to the economies of Guinea, Liberia and Sierra Leone," IMF spokesman William Murray said in a news conference Thursday.
This year was supposed to be a bright one for the three deeply poor governments bearing the brunt of West Africa's Ebola problem. After 50 unbroken years of dictatorial misrule, Guinea—a democracy since 2010—had planned to auction off a multibillion iron-ore concession. Liberia, scene of a horrific 14-year-long civil war, had begun auctioning off offshore oil blocks. Sierra Leone was set to be Africa's fastest-growing economy for the second time in three years, the IMF had projected.But now the fund estimates the epidemic will cut growth in Sierra Leone to 8% this year from a previous rate of 11.3%. Liberia's growth will more than halve to 2.5%. Guinea will see its prospects fall to 2.4% from a previously expected rate of 3.5%, the fund said.
So The IMF will lend them even more money, putting them in even more debt...
All three countries were already in bailout programs.The IMF approved a $200 million loan in 2012 for Guinea, a $100 million loan for Sierra Leone late last year and signed an $80 million credit facility for Liberia two years ago.The World Bank has also boosted its financing to the region, mobilizing a $230 million package for the three worst-hit countries, including $105 million in emergency grants.Each of the three countries faces a financing gap of between $100 million and $130 million due to the havoc hitting agriculture, trade and other commerce, the fund said.
* * *
Finally, as we noted before, this move by The IMF appears to be exactly what they hoped for...
While those in the power and money echelons of the "developed" world scramble day after day to hold the pieces of the collapsing tower of cards in place (and manipulating public perception that all is well), knowing full well what the final outcome eventually will be, those who still have the capacity to look, and invest, in the future, are looking neither toward the US, nor Asia, and certainly not Europe, for one simple reason: there is no more incremental debt capacity at any level: sovereign, household, financial or corporate. Because without the ability to create debt out of thin air, be it on a secured or unsecured basis, the ability to "create" growth, at least in the current Keynesian paradigm, goes away with it.Yet there is one place where there is untapped credit creation potential, if not on an unsecured (i.e., future cash flow discounting), then certainly on a secured (hard asset collateral) basis. The place is Africa, and according to some estimates the continent, Africa can create between $5 and $10 trillion in secured debt, using its extensive untapped resources as first-lien collateral.
US to send 3,000 troops to Ebola danger zone as Obama administration shuffles military's mission in Africa
- The Obama administration said late Monday night that the U.S. military will set up a command post in Monrovia, Liberia, the Ebola outbreak's epicenter
- 'This effort ... will involve an estimated 3,000 U.S. forces,' according to the White House
- Pentagon official says military will 'be the lead dog, and that will make a lot of people nervous. ... No one wants U.S. personnel enforcing someone else's martial law if things go south and the entire region is at risk'
- U.S. Africa Command warns servicemen and women: 'Avoid nonessential travel to Sierra Leone, Guinea, and Liberia'
- Pentagon is drawing flak for sending 25-bed 'field-deployable hospital' that is meant to treat health care workers, not civilian victims
- The U.S. president will travel to the CDC in Atlanta on Tuesday for a briefing about his government's efforts to stem the tide overseas
Some of what America's armed personnel will do in Liberia is unclear. The White House said 'many' of them will be stationed at an 'intermediate staging base' where they will supervise the movement of medical staff, supplies and heavy equipment.
AFRICOM already warns its own personnel that they should 'avoid nonessential travel to Sierra Leone, Guinea, and Liberia.'
And the Defense Department is concerned, one Pentagon official told MailOnline, about the public perceptions aroused when American G.I.s patrol ground zero in a disease outbreak that could plunge three or more countries into chaos if it worsens significantly.
Combat soldiers and Marines 'will be on hand and ready for anything,' said the official, who has knowledge of some, but not all, of the Ebola-related planning. 'But hopefully it will be all logistics and hospital-building.'
'The president has ordered us to help, and we're eager to do it,' he said. 'Now it looks like we're going to be the lead dog, and that's bound to make a lot of people nervous. It's understandable.'
'But no one wants U.S. personnel enforcing someone else's martial law if things go south and the entire region is at risk.'
( Ebola has gone airborne in the past... )
Chilling photos from the front lines of the Ebola outbreak http://wrd.cm/YD0QGV
Liberian president sacks ten officials for staying out of country during #EbolaOutbreak http://bbc.in/1y0vUQm
As #Ebola explodes, Liberia’s sick must fend for themselves http://wapo.st/1xZ7dDW via @washingtonpost
Volunteers in Sierra Leone are to visit every home in the country of 6 million to track down people with Ebola and remove dead bodies.
Steven Ngaoja, the head of the country's Ebola Emergency Operations Centre, said more than 20,000 volunteers would go door-to-door as part of a three-day curfew.
He said every house in the country would be visited from September 19 to 21.
"About 21,400 trained volunteers will be involved in the house-to-house sensitisation activity," he said.
"Likely Ebola cases will be identified or dead bodies will be referred to contact tracing, referral or burial teams."
The worst-ever outbreak of Ebola has claimed 491 lives in Sierra Leone, one of three countries at the epicentre of the epidemic which has so far killed more than 2,000 people.
The government announced on the weekend that pedestrians and vehicles would be barred from the streets, except on essential business, for 72 hours starting from September 19 "to ensure that the dreaded disease is checked".
Mr Ngaoja said president Ernest Bai Koroma would address the nation on September 18, officially declaring a "sit-at-home three days for family reflection, prayers and education while families will be visited by campaign teams".
"We have no choice but to go into it with great commitment and determination," Mr Koroma said in a nationwide address broadcast on Monday.