When you're a nation that absolutely nobody else on the planet will give a loan to, the IMF is volunteering to be the one to provide . A day after people threw both questions and shoes at IMF chief Dominique Strauss-Kahn, he said that the organization's new mandate is to be the global lender of last resort.
The international monetary system must be more stable, and anchored by a global lender of last resort," he said, outlining his vision for the IMF.
So now we're going to have the IMF there to cushion the world from another near economic meltdown. It's a simple as that. Problem solved. What could possibly go wrong?
It also isn't clear what would guarantee the IMF's balance sheet in an extreme case, because it lacks the taxing authority of governments.