And So It Goes…#794

You can fool some of the people all of the time and all of the people some of the time, but you can’t fool all of the people all of the time. That’s what’s so wonderful about capitalism. Especially the serious, grown-up institutions of Global finance and those who oversee them. When all the needless economic pain and hardship inflicted upon millions is over and done with, when all the attendant , negative-qualitative impacts on civil society have been duly inflicted as a sort of de-facto collective punishment on a nation’s citizens; when ALL is done it turns out that it really was a complete and utter balls-up from the very beginning. Or as Ambrose Evans-Pritchard of the Daily-We’re lovin’Global Usurer-Capitalism-telegraph writes:-

IMF admits disastrous love affair with the euro, apologises for the immolation of Greece

28 JULY 2016 • 8:38PM

The International Monetary Fund’s top staff misled their own board, made a series of calamitous misjudgments in Greece, became euphoric cheerleaders for the euro project, ignored warning signs of impending crisis, and collectively failed to grasp an elemental concept of currency theory.

This is the lacerating verdict of the IMF’s top watchdog on the Fund’s tangled political role in the eurozone debt crisis, the most damaging episode in the history of the Bretton Woods institutions.

Many documents were prepared outside the regular established channels; written documentation on some sensitive matters could not be locatedIEO report

It describes a “culture of complacency”, prone to “superficial and mechanistic” analysis,  and traces a shocking break-down in the governance of the IMF, leaving it unclear who is ultimately in charge of this extremely powerful organisation.

The report by the IMF’s Independent Evaluation Office (IEO) goes above the head of the managing director, Christine Lagarde. It answers solely to the board of executive directors, and those from Asia and Latin America are clearly incensed at the way EU insiders used the Fund to rescue their own rich currency union and banking system.

The three main bail-outs for Greece, Portugal, and Ireland were unprecedented in scale and character. The trio were each allowed to borrow over 2,000 percent of their allocated quota – more than three times the normal limit – and accounted for 80pc of all lending by the Fund between 2011 and 2014.

You can’t make all that up. It belies the otherwise unimaginable bounds of speculative fiction. Paul Erdman, back in the ’70’s wrote a couple of international financial thrillers along similar lines. This mea culpa from the IMF is that preposterous. Even within the hegemonic dominant ideological constraints and norms of the IMF, what the hell were the Asian and Latin American executive directors doing? Minding their bankrolled exotic lifestyles?

On the other hand, taking a somewhat longer term view of this imbroglio and its ramifications, one might surmise that one helluva blow has been landed against the system.And that is to be welcomed.The only pity is that the bastards will, no doubt, be able to worm their way out of it,again.


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