Saturday, May 01, 2010
UK to call in the IMF
The Telegraph: Tories urged to call in IMF for audit of UK’s debts if they win election
Bob Janjuah, chief markets strategist at the Royal Bank of Scotland, told a group of German bankers and fund managers in Berlin that the plan would involve the IMF performing a "technical audit" of Britain's public finances, rather than lending any emergency cash to Britain, as it currently is in Greece.
Posted by devo @ 08:27 AM (1324 views) Add Comment
17 Comments
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2. sneaker said...
Who are the IMF? Who gives them power? Where does their money come from?
What is their aim and objective?
Why does their word seem like "the law"? Can I vote for or against them?
3. mrflibble said...
This could provide a good way out for the Tories. The IMF take the blame for implementing the severe austerity measures, the previous government take the blame for putting us in a position of needing them, leaving the Tories with no real blame to take, instead they are just seen as the party who were left to manage this fiasco. Sure Brown and Clegg will jump up and down saying we should have carried on spending and bathing in champagne, but anyone with half a brain knows we cannot.
4. uncle tom said...
Sneaker,
The IMF is essentially an insurance company, spun off from the UN; and subscribed to by many countries.
They have no power as such, but when helping a country that has got into a mess financially, they set conditions before handing over any cash, to ensure that they will eventually get their money back.
They only help a country when the country concerned asks for it - they never stick their nose in when it's not wanted.
Many people get the impression that they have an agenda to interfere, but that is not the case.
5. uncle tom said...
mrflibble,
My first reaction to this story was 'there's no need', but on reflection, I'm inclined to agree with you.
6. vacuouspolitician said...
A sensible decision for any party ...or coalition.
7. devo said...
memo to the IMF:
you might want to start by challenging the suggestion that UK debt stands at approx. £90 000 per household (Source Radio 4, Eddie Mair show, Thursday 29th April 2010)
alternatively, you might want set out a plan of how that amount can be paid down
good luck :)
8. Goldbug9999 said...
We should default and sod our creditors ... That will have the double benefit of wiping out our existing debt and denying our government access to credit for the foreseeable future.
9. drewster said...
It makes perfect sense. If the new government (whoever they may be) unilaterally decides to cut spending, then they are forever seen as the bad guys. By contrast if an 'independent' authority such as the IMF says we need to make changes, that lets the government off the hook.
10. the number cruncher said...
The problem with the IMF is its policy of privatisation of land and common assets such as schools, minerals and water - this means that a lot of real wealth is taken out of the country. It is a bit like getting a charging order against the common man to sell your house for 'unsecured debt'. The rich elites like this as it is an opportunity to privatise and monopolise more essential assets and make the poor work harder for less.
IMF is a very good idea for the wealthiest and a very bad idea for normal people.
11. alan said...
I agree, the IMF could take the flack leaving the (coalition) government to sort out Brown's mess.
12. clockslinger said...
Absolutely Mr Cruncher @ 8. But, of course, that is exactly what the Tories will do anyway. This last two years we have lived through the very obvoious transfer of power and money away from the state and into the pockets of big business and the rich. Now you will get the political lock on that shift via a Tory government/ IMF intervention at tyheir request and, later, the return of the super\right in the US (tea party movement is government in waiting). Ask your average Argentinian worker how they felt when the IMF didn't "impose"it's agenda on them UT @ 3...
13. clockslinger said...
Absolutely Mr Cruncher @ 8. But, of course, that is exactly what the Tories will do anyway. This last two years we have lived through the very obvoious transfer of power and money away from the state and into the pockets of big business and the rich. Now you will get the political lock on that shift via a Tory government/ IMF intervention at tyheir request and, later, the return of the super\right in the US (tea party movement is government in waiting). Ask your average Argentinian worker how they felt when the IMF didn't "impose"it's agenda on them UT @ 3...
14. Sin Nick said...
IMF = Wall Street backed asset strippers.
15. uncle tom said...
Clockslinger,
The Argentine government sought help from the IMF after it's economy went down the pan in the years following the Falklands war. After the initial rescue package, the IMF continued to afford support to maintain an exchange rate peg for several years, but without sufficient surveillance of the Argentine economy, which was once again being abused by the politicians. When this came to light, the IMF felt pressured to withdraw the exchange rate support - with predictable results..
..not the IMF's finest hour, but the point to stress is that it was Argentina who asked the IMF for help in the first instance - the IMF didn't barge in of their own accord..
16. tick tock said...
Come on Tom.
Not only is a 'crisis' often manufactured in the first place, but the IMF 'solution' which is then dangled before the desperate Government of the moment always contains hooks. There are many Nations who have been 'helped' by the IMF (other the Argentina) who would dispute the benevolent nature of the institution.
Moreover, many supporters of the principle institution of the IMF have become increasingly appalled over the last decade by is championing of socio-political dogmas (and by extension the interests of the certain Powerful Nations) & their insistence upon their adoption as precondition for turning the 'financial taps' back on following a crisis.
17. Crunchy said...
12. uncle tom
Yeah right. Someone else does that job.
Everything is fine in uncle toms world.