Imf Admits Disastrous Love Affair With The Euro, Apologises For The Immolation Of Greece

[Fairyland]

Telegraph: http://www.telegraph.co.uk/business/2016/07/28/imf-admits-disastrous-love-affair-with-euro-apologises-for-the-i/

The International Monetary Funds 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 IMFs top watchdog on the Funds 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 located

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 IMFs 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.

IMF

Greece, Ireland, and Portugal accounted for 80pc of IMF lending for three years CREDIT: IMF

In an astonishing admission, the report said its own investigators were unable to obtain key records or penetrate the activities of secretive "ad-hoc task forces". Mrs Lagarde herself is not accused of obstruction.

Edited July 29, 2016 by Fairyland

[Fairyland]

Will anyone be charged/arrested?

[spyguy]

You mean, after being forced to shovel EU/Germanys sh1t, the IMF have reaiiased that theyve spunked most of their money on a small, useless European basket case and have no chance of get their capital back?

[John The Pessimist]

I'm sure that the people & government of Greece feel much better now that they have apologised.....

[Blod]

Will anyone be charged/arrested?

Well we know of one of their leading lights whose collar is being felt.

The entire establishment lack courage and or ability. They shy away from biting the bullet at every opportunity. They feed fish to those starving on the beach whilst at the same time warning of the dangers of attempting to on to sea to search for more.

[Fairyland]

"The trio were allowed to borrow 2,000 percent of their allocated quota"

Someone should be accountable for this?

And this

In an astonishing admission, the report said its own investigators were unable to obtain key records or penetrate the activities of secretive "ad-hoc task forces".

[crash2006]

Greece should sue them for being miss sold a product under wrong advice.

[ChewingGrass]

Nothing will come of this as I'm sure all those involved have levels of immunity to prosecution similar to EU commissioners.

Unless of course they get caught doing things to hotel staff in a foreign country.

[wonderpup]

This is the lacerating verdict of the IMFs top watchdog on the Funds tangled political role in the eurozone debt crisis,

The IMF now have a Politcal role? When did that become official?

One of the striking features of the mainstream media coverage of the entire Greek debacle is the complete failure to ask a very basic question; Why were the IMF ever involved in the internal affairs of the EU in the first place?

Does anyone seriously imagine that the EU lacked the funds to deal with the Greeks on their own?

The reality is that the entire point of the IMF's involvment in Greece was to provide politcal cover for EU as it proceeded to bail out the European banking system and dump the cost on the backs of the ordinary Greek people by claiming to be 'helping' them. Since when does lending more money to a bankrupt nation constitute helping? Especially when that 'help' was given on the condition that the Greek state carry out savage cuts to health and welfare systems in order to 'restructure' their economy.

Once again the rich were bailed out at the expense of the poor- and even as schoolchildren in Greece were fainting in class due to malnutriion the 'Troika' were demanding ever more cuts to lend a spurious legitimacy to their absurd policy of lending vast amounts of money to a state that was clearly never going to be able to pay that money back without a major debt restructing programme.

Greece and the way it was dealt with is the perfect example of why the EU is a corrupt and doomed project- because it's leadership would rather see Greece in ruins than admit that their precious project has some real and fundamental problems in both it's financial architecture and it's democratic legitimacy.

[interestrateripoff]

Just classic management with fingers in their ears we know what we are doing ********.

[wonderpup]

And the IMF was of course one of the 'expert' institutions that were issuing threats toward those considering voting leave in the Brexit referendum based on the quality and impartiality of it's analyisis. :lol:

[DeepLurker]

Great post.

+1

[Confusion of VIs]

Nothing will come of this as I'm sure all those involved have levels of immunity to prosecution similar to EU commissioners.

Unless of course they get caught doing things to hotel staff in a foreign country.

I thought his mistake was to get caught before he got the job and the immunity that goes with it.

[South Lorne]

And the IMF was of course one of the 'expert' institutions that were issuing threats toward those considering voting leave in the Brexit referendum based on the quality and impartiality of it's analyisis. :lol:

....and as we all know now their Managing Director Christine Lagarde is due to to face a court trial in France ....stranger than fiction......

• IMF's Lagarde to face trial over payout court confirms
• 22 July 2016

http://www.bbc.co.uk/news/world-europe-36868195

Edited July 29, 2016 by South Lorne

[spyguy]

IMF is international. The non Western partners are fcked off so much capital and resources have been spent propping up crappy little Eu countries.

[giggler000]

So who gets fired? besides the general populous

[wonderpup]

I had a brief spurt of optimism a while back when I heard some rumours about a plan to take out the IMF- but then I realised it was publicity material for the new Ton Cruise movie and they were talking about the impossible mission force.

Of the two organisations it's hard to decide which is the least credible- the one that actually is fiction or the one that peddles fiction in the guise of economic analyisis.

[billybong]

More rewriting of history.

Unexpected etc etc.

It doesn't seem to cover how they got into that position in the first place either.

If there ever are admissions of failure then it's always the organisation's fault and never any individual's fault or named groups of individuals and certainly never those running things (they were misled by top senior staff - of course). No names no pack drill. Top staff that will no doubt have been shunted around over the years to dilute responsibility - including full use of revolving doors (so that heir "expertise" can be shared out and used elsewhere).

Likely if there hadn't been a Brexit vote even those whitewash findings might never have seen the full light of day.

Edited July 31, 2016 by billybong

[billybong]

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

From top to bottom throughout the entire banking system then.

[sikejsudjek]

IMF = international money fraud