THE IMF announced its leading economists this week had concluded that austerity to national economics may be a cure more harmful than the problem. New process to allow breathing room for nations to improve tax receipts over time seems to be a new policy.

This will mean oceans of money flowing into world markets, inflating the system. Debt will repaid without negotiated haircuts but rather now through decades of longer term inflation. Gasoline selling for 200 dollars a gallon ( US ) at the pump, would make todays sovereign debt a discount in those dollars against todays face values for bond holders.

We assume the IMF will not throw fundamentals out the door or the world system would crash into panic and SUPER CRASH. This policy change is the largest in our opinion since the IMF was formed.

What does it mean for nations like Greece and others?

We don’t know YET.

We are studying the new directions carefully. We’ll give you input when we form an opinion of how this policy may fly or crush future money flows at the source level – nation to nation trade and financing.

We feel the new policy holds great promise. The details and execution will be the final driver for these choices.

Its new – untried and represents new economic theory.

Lets all follow this carefully. Its foundational to all our futures.

PS: Thank you Naiome Klien author of SHOCK DOCTRINE you did it on your watch.