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...agreement to triple the IMF's resources to $750 billion, and to allow it to issue a further $250 billion on its own. Part of that money is supposed to go to countries suddenly in financial straits, and part is designed to serve as a more general liquidity boost to the contracting world economy. (See pictures of stores that have closed down...

Author: /time Magazine | Title: International Monetary Fund 2.0 | 4/20/2009 | See Source »

...question is whether the IMF is up to the job being thrust upon it. The huge boost to its reserves exists on paper, but it's not yet clear where all that money will come from. Japan has pledged $100 billion. Gordon Brown, the British Prime Minister who hosted the G-20 summit, said the European Union would put up $100 billion and that China would provide $40 billion. But Chinese officials wouldn't confirm that amount - and even if the money is forthcoming, it still leaves $260 billion unaccounted for. At a time when governments are financially overstretched, that...

Author: /time Magazine | Title: International Monetary Fund 2.0 | 4/20/2009 | See Source »

...trying to make the Obama Administration pay attention to the 10th Amendment." The so-called 10th Amendment movement, asserting the rights of the states to claim all powers not granted specifically to the Federal Government, has been grist for conservatives for more than a decade. The movement got a boost following the Democratic return to dominance in Congress and more traction when federal dictates about how to spend stimulus money raised hackles in places like Texas and South Carolina. Some two dozen state legislatures are considering or have passed resolutions supporting the 10th Amendment...

Author: /time Magazine | Title: What's All That Secession Ruckus in Texas? | 4/18/2009 | See Source »

...that actually mean, dumbed down? Whitney's question was specifically about Citi's $1.7 billion in investment-banking profits in Europe, and Kelly's eventual answer was basically just that business had been good. But bank financial statements are never that simple: Citi's overall investment-banking earnings were boosted by a $2.5 billion derivatives valuation adjustment "mainly due to the widening of Citi's CDS spreads." In somewhat dumbed-down but still utterly flummoxing language: credit-default swap (CDS) spreads represent the cost of insuring against Citi's default. That cost went up in the quarter as investors fretted...

Author: /time Magazine | Title: Citigroup's Surprising Profit: Is It for Real? | 4/17/2009 | See Source »

...different, but similar, programs. Changes that might seem dubious in isolation make more sense when viewed as part of what Gates calls his "holistic assessment." The argument that the Air Force needs more F-22 fighters loses some of its punch once you learn that Gates wants to boost production of the $100 million-a-copy F-35 fighter...

Author: /time Magazine | Title: Gates' Battle Plan for the Defense Budget | 4/17/2009 | See Source »

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