IMF lunacy: Lagarde admitted to Varoufakis in private that the program imposed on Greece doesn't work!
As
Yanis Varoufakis describes in his book Adults
in the Room:
Less
than a month after my election, on 11 February 2015, in one of those
spirit-numbing, windowless, neon-lit meeting rooms that litter the
EU’s Brussels buildings, I found myself sitting opposite Christine
Lagarde, the IMF’s managing director, France’s ex-finance
minister and a former Washington-based high-flying lawyer. She had
waltzed into the building earlier that day a glamorous leather
jacket, making me look drab and conventionally attired. This being
our first encounter, we chatted amicably in the corridor before
moving into the meeting room for the serious discussion.
Behind
closed doors, with a couple of aides on each side, the conversation
turned serious but remained just as friendly. She afforded me the
opportunity to present my basic analysis of the causes and nature of
the Greek situation as well as my proposals for dealing with it, and
nodded in agreement for much of the time. We seemed to share a common
language and were both keen to establish a good rapport. At the
meeting's end, walking towards the door, we got a chance for a short,
relaxed but telling tete-a-tete.
Taking
her cue from the points I had made, Christine seconded my appeals for
debt relief and lower tax rates as prerequisites for a Greek
recovery. Then she addressed me with calm and gentle honesty: You
are of course right, Yanis. These targets that they insist on can't
work. But, you must understand that we have put too much into this
programme. We cannot go back on it. Your credibility depends on
accepting and working within this programme.
So,
there I had it. The head of the IMF was telling the finance minister
of a bankrupt government that the policies imposed upon his country
couldn't work. Not that it would be hard to make them work. Not that
the probability of them working was low. No, she was acknowledging
that, come hell or high water, they couldn't work.
Recall
that in
a
released
archive
of
13 million pages by CIA, we found quite an impressive report
concerning
the IMF changing strategies on debtor countries. The report dates
back to 1985, but what is even more impressive, is that, it was
predicting an increase of instability in those countries, as well as,
methods of reducing potential popular anger! Specifically,
the report was monitoring IMF's changing policy to enforce strict
conditions and austerity on indebted countries that could cause
political unrest.
Concerning
the policies imposed by the IMF, the report clearly
refers to the complete control of money flow
through the central bank:
Standby
arrangements almost always include performance criteria expressed in
terms of quantitative targets, which usually are reviewed on a
quarterly basis. The criteria normally take three general forms: A
ceiling on central bank lending and the subceiling on lending to the
central government [...] Limits on the assets of the central bank,
which are designed to limit the expansion of money supply ...
Do
you need more proof of the IMF's dirty mission?
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