After
another report, this time by the IMF's Independent Evaluation Office
(IEO), exposing IMF's lethal "mistakes" who led to the
destruction of national economies, it was confirmed that "technical
expertise" of the Fund not only used by the European Financial Dictatorship officials to save their
currency and banks, but also to finish the Greek experiment in order
to expand it throughout eurozone.
From
Telegraph
:
|
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.
[...]
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 European
Union insiders used the fund to rescue their own rich currency
union and banking system.
[...]
The
report said the whole approach to the eurozone was characterised
by “groupthink” and intellectual capture. They had no
fall-back plans on how to tackle a systemic crisis in the eurozone
– or how to deal with the politics of a multinational currency
union – because they had ruled out any possibility that it could
happen.
[...]
The IMF
persistently played down the risks posed by ballooning current
account deficits and the flood of capital pouring into the
eurozone periphery, and neglected the danger of a "sudden
stop" in capital flows.
[...]
While the
fund’s actions were understandable in the white heat of the
crisis, the harsh truth is that the bailout sacrificed Greece in a
“holding action” to save the euro and north European banks.
Greece endured the traditional IMF shock of austerity, without the
offsetting IMF cure of debt relief and devaluation to restore
viability.
A
sub-report on the Greek saga said the country was forced to go
through a staggering squeeze, equal to 11pc of GDP over the first
three years. This set off a self-feeding downward spiral. The
worse it became, the more Greece was forced to cut – what
ex-finance minister Yanis Varoufakis called "fiscal
water-boarding".
[...]
The IMF
thought the fiscal multiplier was 0.5 when it may in reality have
been five times as high, given the fragility of the Greek system.
The result is that nominal GDP ended 25pc lower than the IMF’s
projections, and unemployment soared to 25pc instead of 15pc as
expected.
[...]
The injustice is that the cost of
the bailouts was switched to ordinary Greek citizens – the
least able to support the burden – and it was never
acknowledged that the true motive of EU-IMF Troika policy was to
protect monetary union. Indeed, the Greeks were repeatedly blamed
for failures that stemmed from the policy itself. This unfairness
– the root of so much bitterness in Greece – is finally
recognised in the report.
|
On the
occasion of this new report which puts the final nail to the coffin
of the IMF reliability, Greece's former Minister of Finance, Yanis
Varoufakis, unleashed a fierce attack against the EFD/IMF mafia on
twitter:
The IMF's Evaluation Office acknowledges "what ex-finance minister Yanis Varoufakis called fiscal water-boarding" https://t.co/SftT4j2oWm— Yanis Varoufakis (@yanisvaroufakis) July 28, 2016
Time to demand the immediate firing of Poul Thomsen. No ifs. No buts. Exit stage left. https://t.co/SftT4j2oWm— Yanis Varoufakis (@yanisvaroufakis) July 28, 2016
The IMF confesses it immolated Greece on behalf of the Eurogroup https://t.co/CoK0IM3vZC— Yanis Varoufakis (@yanisvaroufakis) July 29, 2016
TIME FOR RESIGNATIONS AT THE IMF, ECB & COMMISSION https://t.co/CoK0IM3vZC (Beginning with P. Thomsen, T. Wieser, D. Costello, K. Masuch)— Yanis Varoufakis (@yanisvaroufakis) July 29, 2016
TIME FOR AN APOLOGY TO THE PEOPLE OF GREECE https://t.co/CoK0IM3vZC— Yanis Varoufakis (@yanisvaroufakis) July 29, 2016
TIME FOR A POLICY U-TURN, BEGINNING WITH IMMEDIATE DEBT RELIEF, THE END OF AUSTERITY & THE CESSATION OF FIRE SALES https://t.co/CoK0IM3vZC— Yanis Varoufakis (@yanisvaroufakis) July 29, 2016
Recall that
Varoufakis was one "barrier" that had to be removed
according to the EFD officials. As Paul Mason wrote already since May 2015:
“In the
script according to the eurozone, the expected ending is: Syriza
splits; finance minister Varoufakis makes good his pledge not to sign
a surrender and resigns. A government of the centre-left forms, with
Alexis Tsipras now allied to the centrist Potami party and with tacit
support from a liberal wing of the New Democracy party. Debt relief
happens, but on the terms dictated by the lenders, and Syriza
survives to complete its mutation into a centre-left social
democratic party.”
Also,
the Greek opposition proposed recently an
Examination Committee to investigate the causes behind the
introduction of capital controls in the summer of 2015, the third
bailout agreement and the need for a new bank recapitalization: “New
Democracy’s proposal calls for the formation of an Examination
Committee to investigate the causes behind the introduction of
capital controls in the summer of 2015, the third bailout agreement
and the need for a new bank recapitalization. According to a report
in major Greek newspaper Ta Nea, the main opposition party will also
call for an investigation of “Plan X” that former Minister of
Finance Yanis Varoufakis composed, should Greece had been forced out
of the euro zone, and Mr. Galbraith revealed in a book recently.”
Meaning
that the Greek opposition, completely devoted to Troika's neoliberal
policies, wanted to "crucify" Varoufakis because he tried
to build an emergency plan in case that Greece's creditors would put
the country in the corner as they eventually did through the
financial coup in summer 2015!
Of
course, the opposition miraculously "erased" all the
previous years since 2010, marking the most devastating period for
the Greek economy under the New Democracy - PASOK coalition
government that implemented the IMF policies of destruction. It
didn't bother, as expected, to request an Examination Committee for
that period.
Related:
Comments
Post a Comment