Why Serbia Needs IMF?

The IMF has no money. This is a fact. I have more money than the IMF.

How can the IMF lend Serbia money if it has none?

The answer is that the IMF lends credits and not money. Credits are created by the IMF, the World Bank, the American Federal Reserve Bank, the European Central Bank, the Bank of England, the Bank of Japan, the Russian Central Bank, the Indian central Bank, and the Chinese central Bank, and a few other enlightened countries.

The Serbian central bank could also create its own Dinar credits but the EU and the IMF have forbidden this. If the National Bank of Serbia wants to create new Dinar credits, then it must first prove that it has enough foreign currency reserves. It can borrow foreign currency credits from western banks if it agrees to pay high interest rates and use these as "reserves."

This is a nice little racket that western bankers have set up.

1. Serbia needs credit to get business moving and reduce unemployment.
2. Western banks stop Serbia creating its own Dinar credits.
3. Serbia has to borrow foreign currency credits from western banks and retain them as reserves. These "reserves" allow Serbia to issue Dinar credits.
4. Western banks create the credits they lend to Serbia out of thin air. They cost nothing to create but earn the banks lots of interest.
5. With these new foreign currency reserves Serbia can now create some of the credit it needs but it has to pay western banks interest to do so.

The IMF has no money. This is a fact. I have more money than the IMF.

How can the IMF lend Serbia money if it has none?

The answer is that the IMF lends credits and not money. Credits are created by the IMF, the World Bank, the American Federal Reserve Bank, the European Central Bank, the Bank of England, the Bank of Japan, the Russian Central Bank, the Indian central Bank, and the Chinese central Bank, and a few other enlightened countries.

The Serbian central bank could also create its own Dinar credits but the EU and the IMF have forbidden this. If the National Bank of Serbia wants to create new Dinar credits, then it must first prove that it has enough foreign currency reserves. It can borrow foreign currency credits from western banks if it agrees to pay high interest rates and use these as "reserves."

This is a nice little racket that western bankers have set up.

1. Serbia needs credit to get business moving and reduce unemployment.
2. Western banks stop Serbia creating its own Dinar credits.
3. Serbia has to borrow foreign currency credits from western banks and retain them as reserves. These "reserves" allow Serbia to issue Dinar credits.
4. Western banks create the credits they lend to Serbia out of thin air. They cost nothing to create but earn the banks lots of interest.
5. With these new foreign currency reserves Serbia can now create some of the credit it needs but it has to pay western banks interest to do so.