It is easy to get distracted by other important events in the last week by the enormity of the information that has been released in the so-called – The Panama Papers – which document around 40 years of secretive banking deals, tax dodging, criminal money laundering and political corruption. The information shows that “major banks are big drivers behind the creation of hard-to-trace companies” in tax havens and once again demonstrates the urgency of root-and-branch banking reform to wipe out their ‘non-banking’ businesses. The revelations from that leak (‘hack’) will continue for some time given the size of the data. But the world keeps turning and the IMF keeps informing us, either through their own voluntary statements or through information that they clearly don’t want us to know about, which gets leaked, just what a rotten institution it has become. Read on and feel sad.Bill Mitchell – billy blog
IMF groupthink and sociopathsBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia
3 comments:
They are just pissed that they cannot simply credit a bank account like the ECB can to buy positive yield financial assets...
So as they dont have a "plan B" for revenues like the ECB then they are going to not participate...
To the ECB, if Greece defaults it no big deal as they have a lot more EUR coming in than is at risk in Greece... to the IMF its getting harder everyday as yields keep falling... and they cant just create EUR balances to buy EUR corporate bonds to make munnie...
The IMF is probably close to insolvency with global govt rates so low/negative so a Greek default might just put them under...
The IMF is an arm of US foreign policy.
In case anyone could actually believe otherwise, then simply have an honest look at the rule changes enacted for the Ukraine, to isolate Russia and others who defy the hegemon.
The US will not allow Greece to enter the territory of default. That process would unleash Greek domestic political chaos, and once again bring exiting the EMU to the forefront.
Yes, the mathematics employed to demonstrate that Greece isn't insolvent defies reality, however, reality takes a back seat to the Troika's ideology.
This would isolate Greece and expose them to the influence of Russia/China, what other choice would they have?
Just like last time, the US will dictate what the end will look like. Thus leaving the Troika holding the bag and publishing the propaganda.
" IMF is an arm of US foreign policy."
Well if it is then it needs Tommy John surgery...
If they think that currying favor with the Obama admin in Ukraine puts them in a better position to receive a recapitalization from the US govt they are even more stupid than I thought....
There is just no appetite in the US currently for ANY fiscal expansion for ANY reason (SCARY!) ... even any GOOD reason... much less than recapitalize these IMF morons no way in hell...
Post a Comment