IMF “to admit mistakes” in handling Greek debt crisis and bailout — My response…

Here is a short piece that I felt I had to inter­ject at The Guardian (UK)

RagingGoldenBul unleashes on The Guardian (UK) about the IMF (International Mafia Federation)

Rag­ing­Gold­en­Bul unleash­es on The Guardian (UK) about the IMF (Inter­na­tion­al Mafia Fed­er­a­tion)

😉

Rag­ing­Gold­en­Bul — 05 June 2013 6:54pm

Rec­om­mend: 77

Let us not ponce about the prover­bial bush here my brethren:

The IMF (short for: Inter­na­tion­al Mafia Fed­er­a­tion) is noth­ing more than anoth­er pho­ny instru­ment cre­at­ed by the US gov­ern­ment, for the US gov­ern­ment, along with World Bank at that infa­mous Bret­ton Woods (1944) meet­ing where they strong armed the rest of the world over 21 long, gru­el­ing, and I would put it to you ardu­ous days (blood must have been pour­ing from the poor del­e­gates ears after day 12) while the world was still at WAR. Pic­ture it.

Oh how they seized their chance, dragged in John May­nard Keynes (UK in col­lu­sion – spe­cial rela­tion­ship you know), and invent­ed a crock, because no one had any choice. No Choice.

It is well known that M. Lagarde (after they ditched DSK) let the cat out of the “bail-in” bag way too ear­ly for the FedReserve, and the ECB, and thus both the Bernanke and the Draghi are now sour-puss­es. After those tril­lions of USDs that heli­copter Ben print­ed-up, M. Lagarde blew it in one momen­tary lapse of rea­son. Now Ben will bail-out him­self of the pic­ture at end of the cur­rent term as Gov­er­nor of the Fed.

Every­one knows that “Bail-ins” are com­ing now to a Bank near you real soon.…Are you ready for that?

Why does any­one lis­ten to a word these guys (Inter­na­tion­al Mafia Fed­er­a­tion) say any­more? Why do they point to them as if they are cred­i­ble?

It all leads back to one thing — US Dol­lar hege­mo­ny, and any­thing to keep that pup­py alive – alas brethren, the end is nigh.

Please excuse my rather fruity and col­or­ful lan­guage (sausage I hate US Eng­lish 😉 )…

Orig­i­nal Arti­cle:

The Inter­na­tion­al Mon­e­tary Fund is to admit that it has made seri­ous mis­takes in the han­dling of the sov­er­eign debt cri­sis in Greece, accord­ing to inter­nal reports due to be pub­lished lat­er on Wednes­day.

Doc­u­ments pre­sent­ed to the Fund’s board last Fri­day will reveal that the Wash­ing­ton-based organ­i­sa­tion under­es­ti­mat­ed the dam­age aus­ter­i­ty would cause to the euro­zone coun­try, which has required two bailouts in the past three years.

The Wall Street Jour­nal report­ed that the papers would say that finan­cial sup­port from the Fund, the Euro­pean Cen­tral Bank and the Euro­pean Com­mis­sion had bought time for Greece but had only been made pos­si­ble because the IMF had bent its own rules to make the coun­try’s debt look more sus­tain­able than it was. Accord­ing to the WSJ report, Greece failed to meet three of the Fund’s four tests to qual­i­fy for help.

A Fund spokes­woman said: “We will be pub­lish­ing a num­ber of papers on Greece lat­er today. The board met last Fri­day to dis­cuss sev­er­al doc­u­ments on Greece includ­ing the review of its pro­gramme and its annu­al eco­nom­ic assess­ment.”

Greece became the first euro­zone nation to require a bailout by the inter­na­tion­al com­mu­ni­ty in 2010, but need­ed a sec­ond round of finan­cial assis­tance in ear­ly 2012 when a deep reces­sion and high inter­est pay­ments threat­ened to send its debts spi­ralling out of con­trol.

The so-called troi­ka of the IMF, ECB and EC forced pri­vate sec­tor bond­hold­ers to write down the val­ue of their Greek bonds in an attempt to bring the coun­try’s debts down to sus­tain­able lev­els of 120% of nation­al income by 2020.

Chris­tine Lagarde, the man­ag­ing direc­tor of the Fund, has said many times over the past year that Greece should now be in a posi­tion to pay off its debts, but the WSJ reports that IMF staff believe this can­not be said with any cer­tain­ty.

In Athens, offi­cials react­ed with bare­ly dis­guised glee to the news.

The report con­firms what Greek offi­cials have long said: that the first bailout of uncom­pro­mis­ing bud­get cuts and tax increas­es, the price of 110 bn euro in emer­gency funds in May 2010, was the wrong pre­scrip­tion for a coun­try not only bat­ting a mon­u­men­tal debt load but ram­pant tax eva­sion and a flour­ish­ing black econ­o­my.

Under the weight of such mea­sures – applied across the board and hit­ting the poor­est hard­est – the econ­o­my, they said, was always bound to dive into an eco­nom­ic death spi­ral. “For too long they [troi­ka offi­cials] refused to accept that the pro­gramme was sim­ply off-tar­get by hid­ing behind our fail­ure to imple­ment struc­tur­al reforms,” said one insid­er. “Now that reforms are being applied they’ve had to accept the bit­ter truth.”

The Greek media recent­ly quot­ed IMF man­ag­ing direc­tor Chris­tine Lagarde describ­ing 2011 as a “lost year” part­ly because of mis­cal­cu­la­tions by the EU and IMF. The author­i­ta­tive Kathimeri­ni news­pa­per said the report iden­ti­fied a num­ber of “mis­takes” includ­ing the fail­ure of cred­i­tors to agree to a restruc­tur­ing of Greece’s debt bur­den ear­li­er – a fail­ure that had had a dis­as­trous effect on its macro-eco­nom­ic assump­tions.

From what we under­stand the IMF sin­gles out the EU for crit­i­cism in its han­dling of the prob­lem more than any­thing else,” said one well-placed offi­cial at the Greek finance min­istry. “But acknowl­edge­ment of these mis­takes will help us. It has already helped cut some slack and it will help us get what we real­ly need which is a hair­cut on our debt next year.

See the full sto­ry: http://www.guardian.co.uk/business/2013/jun/05/imf-admit-mistakes-greek-crisis-austerity#comment-24097893

© Copy­right MMXIII RagingGoldenBull.com

Quote — Denis Healey on Tax Evasion

Denis-Healey

The dif­fer­ence between tax avoid­ance and tax eva­sion is the thick­ness of a prison wall”

- Denis Healey (for­mer UK Chan­cel­lor of the Exche­quer 1974 — 1979)

Tax avoid­ance is sim­ply clever finan­cial plan­ning, while tax eva­sion is ille­gal. Of course, gov­ern­ments would say that would­n’t they?

More Gold­en Mon­ey Quotes

© Copy­right MMXIII RagingGoldenBull.com