Wednesday, 25 May 2011

IMF: Rebellion of the BRIC's

Interesting to see a rare grouping of the BRIC's in attacking the IMF and wanting to seize the crown. When one considers the history of the IMF, with its poor policies in the 80's that wrecked many a country and its perception (see picture) of being a Western tool for control of developing counties, this should be no surprise. The IMF is a tool of western imperialism in the minds of many of those on the receiving end of its policies.

One problem with this is that overall, the view expressed above is wrong. The IMF exists to save countries and often the worst that can be said about it is that in acting so late in the day, the problems have already overtaken he ability of a Country to cope - leading to default and mass austerity for the population. The IMF is an ambulance; the patient is already seriously wounded on arrival and emergency treatment is hazardous without guarantees pf success.

Now, though is a new century and with the Western powers themselves excruciatingly weak, it is a good time to strike. However, I doubt very much even if a non-European head was appointed that it would make much difference. The glamour of being an international civil servant and the mindset that goes with it will soon affect any incumbent (after all, in order to apply you need to be from this cadre already) - and it will be back to business as usual.

The worry must be for the Europeans who are trying to get the IMF to hep the Euro without agreeing fair terms - however, this is going to fail anyway as the European debt crisis spirals over the next few months and years.

27 comments:

Anonymous said...

I find your analysis of the IMF and its history totally flawed, but given where you sit,...predictable.

If you call the IMF an ambulance, it is an ambulance staffed by the originators of the financial chaos it is sent to tidy-up.

The emerging nations are correct in their analysis...try reading "Confessions of an Economic Hit Man", by John Perkins...it explains in detail how the actions were taken in the South Americas, South East Asia, and the Middle East. He was a senior player, and party to many CIA assassinations when the power of debt failed to change national leaders/policies.

He explains in candid terms how the power of debt has largely replaced the power of military in the projection of western hegemony globally. Now that projection is playing out throughout the G7 as the vultures swoop for the low hanging fruit.

Consider that the IMF basket of currencies is still the same old, same old, as they all print to infinity and debase via inflation that every nation in the G7 seeks to hide through fraudulant statistics. Once the regional currencies are established, backed by hard assets, the western paper will be worth far less in purchasing power,... Try the "Nordic Currency" for size later!

Your last few words make partial sense....spiraling debt! Its a long line of cards, all balanced on their edge..all G7 nations hold FX reserves of other G7 nations, and think that is good. Fucking idiots! Everyone is insolvent, goddamm it, and instead of bond holder hair-cuts and equity wipe-outs three years ago, the shiit climbed onto the populations shoulders, in the EU under a regime that said no devaluation..more fucking idiots. EU applicants foolishly applying to entities who fund the IMF to hide their debt in order to achieve EU membership, via derivatives.

And ultimately, the IMF is funded by the same guys who preach globalism as a religion, and who funded the transfer of industrial and commercial knowhow away from the G7, ie, the funded and knowingly created the current G7 problems.

And we seek their advice??

And laud their representative?

Honestly, CU, you can do better!

Or can you?

Blue Eyes said...

I think your last paragraph is spot on. The Eurozone heads want an IMF chief who will lend the Eurozone the cash cheaply enough for it to work. Unfortunately for the Eurozone countries, most of the lending capital comes from already-indebted countries such as the UK, France, Germany, US, etc.. So we are back to the same problem.

The West does not deserve to be "saved" - it has run up these debts deliberately and in full knowledge of the consequences. The West's fall is no less embarrassing than Sarah Ferguson's. The rich aren't supposed to go bust.

Anonymous said...

http://www.youtube.com/watch?v=TB6MJnzhMYY&feature=mh_lolz&list=FLvWUmVUedJZg

Anonymous said...

http://www.zerohedge.com/article/eu-greek-eurozone-membership-stake-and-greece-must-agree-tough-measures-or-return-drachma

Anonymous said...

http://www.zerohedge.com/article/european-gold-confiscation-sceme-unfolds-european-parliament-approves-use-gold-collateral


Hmm, seems to be a coincidence here.

Now let me see, who were the axis of evil of bush the shrublet?

Wow, Iran was there...they sell oil in other than $, and welcome Chinese infrastructure investment. Libya also welcomed the Chinese investments.

So when the arabs holding gold in the UK that they thought was allocated find that it is gone, leased and sold into the market, what are they gonna do?

Demand gold for oil?

So why is the ME in flames?

You gotta be big and tough to be the first.

The EU better mop up all the gold from the peripheral states pretty damn quick, and speed up their piss-poor processes that currently kill mining businesses.

And the IMF?

You can fuck the world, but you can't fuck the chambermaid. Such a pity she carries HIV.

DSK, baby, Karma, ain't it a bitch!

Anonymous said...

So who are the voting members of the exchange that holds COMEX?

In the main,the same bodies that are Wall Street, that own the Fed (among others), that are LBMA members, that majority fund the IMF, that set the basket of currencies, that control rating agencies, that operate a revolving door with Gov't and finance.

So will gold rise in price when the confication is complete?

Well, the confiscation won't be limited to the peripherals, but YES, it will be a moon-shot AFTER the confiscation.

Until the bailouts/confiscations are complete, the price will remain low..., (via the owned exchanges),that way even after gold is gone to the centre, the paper debt will be dragging down the peripherals into serfdom.

1930's on an international scale.

Andrew B said...

So, given this analysis,

1
how do you short the euro on a long term basis

2
where does the UK go

Timbo614 said...

we're doomed, DOOMED I tell ya:)

It will crash and burn sooner or later I don't pretend to know when. But crashing and burning is the only way for the money mess to be sorted. Then everyone, bankers, oilmen(oilpersons?), PM holders, everyone will find after TSHTF nothing much has changed we just calculate in smaller numbers!

The numbers have grown too big, but hey, that's exponentiality for you!

Budgie said...

Anon 10:52am - your analysis is false. The IMF are not the "originators of the financial chaos it is sent to tidy-up".

The originators are some nation's financial politicians. These politicians are far too jealous of their own power to willingly cede financial control to anyone else, though a few have stupidly ceded control of their currency to the ECB. (This schizophrenic split is a fundamental factor causing the problems in Greece, Eire et al).

So CU is correct, the IMF does not run any country's finances until that country crashes and their political leaders face reality and ask for help.

Dick the Prick said...

I thought O'Bama's speeches have been interesting. In both Ireland & at Westminster this aft he said 'good guys who paid their bills' or words to that effect. It's defo in the US' best interest to have the Euro maintained but I doubt any sustenance will be forthcoming the Euro and LeGarde has got the votes so far. I think this is a done deal. It's quite surprsing how much of the TARP money came here.

hatfield girl said...

There is another unwritten but powerful convention at both the World Bank and at the IMF: that the top posts should be held by men.

This is rarely, if ever, mentioned in discussions of the inappropriateness of continuing with post second War practice, but for many of us - half the WORLD, never mind developed, developing, or any other set of distinctions chosen - we want a woman. Yes, the developing economies do have perfectly capable women to take the post, but it's never a good idea to do two things at once.

Considering the cause of the vacancy arising, we want a woman NOW. Developing economies can have their bite of the cherry next time.

CityUnslicker said...

Anon - welcome - please choose a name! I doubt all points of view which says there are co-ordinated global attempts to screw everyone. It is not my experience that there is that much competence amongst humanity to carry it on.

The IMF is a tool for helping sick countires, sadly the tools it has to use are poor and rarely able to provide a cure. But I do agree with Budgie, if you sort your own countries fnances then there is no need to call in the IMF. Saying the West, or anyone, FORCED, debt on us is pure diversionary tactics - often used as populist diversion by the dictators as they stash the cash. Of course, the socialists fall for this every time, bu then their hero is Stalin or Mao.

As for gold, i buy and trade this, but who cares about confiscation. if it comes, make sure you sell first - only the devotion of goldbugs to the cause makes them scared. Personally, if it comes to gold confiscation then 2008 is going to be looking like a boom, not a bust.

Andrew B - Buy petro currencies like Norwegian Kroner - maybe in a pair against the Euro.
UK - everything needs ot be done to avoid a bailout - more cuts to benefits, inessential services will come.

Hatfield - you care but why? Would Hilary Clinton be better than Obama - they would have identical policies more or less. My point still stands, member of the international bureaucracy class will all groupthink - man or woman, frenchman or chinaman.

Anonymous said...

Hello, Budgie. Greetings.

My analysis is correct.

You are only partially correct.

The IMF as an entity is sent in towards the end.

The original problems are caused by un-repayable debt.

The bodies who create the un-repayable debt are, in the main, the bodies who majority fund, and therefor control the IMF.

Read Perkins' book.

The loot to build the infrastructure in the foreign nations never got to those nations, it went direct to US contractors, debts always being denominated in US $. When orchestrated exodus of US funds demolished the nations economics, the IMF would enter to finish the slaughter.

Concerning your statement re politicians. In the main it was recognised that to refuse the US offer of "help" would ultimately lead to either war with the US, or the death of senior politicians, probably via an plane crash, a favourite of the CIA. Once again, read Perkins!

The Poles recently made a big mistake, with most politicians on one plane....they were kicking against the EU and Swine flu jabs at the time!

BTW all "Economic Hit Men" were trained at School of the Americas.

In relation to the EU, they used a single currency, and interest rates set too low, with a fast flowing money stream, to create debt at will, and yes, the politicians there were fools to a criminal extent.... the periphery should have realised the problem of loans denominated in Euros where the local currency was other than Euros... But the intent, from the political centre was always the same..control via debt, and recently, gold extraction. Shame Ireland has fewer than ten tonnes!

When their country crashes and politicos face reality, they finally realise the extent of the screw. They may also realise the true extent of the Great Game.

Anonymous said...

CU.

Your first three paras..

I have seen you voice that sentiment before.

As then, it doesn't wash now.

It's a reflection of where you sit.

There are no coincidences. ;-)

I don't know about the dates in the following, but the sentiment..

http://goldharvest.blogspot.com/2011/05/august-2-2011-is-financial-system-d-day.html

Re confiscation..I wasn't meaning at a personal level. As the central bank for the EU, the ECB will eventually force national gold holdings of previous central banks to be "donated", in one form or another, for the good of the EU finances, to the ECB. The construction of "regions" after a number of years and propaganda, will no doubt make this easier.

Budgie said...

Anon 11:13pm:

"My analysis is correct."
You stated that the IMF were staffed by the originators of the chaos, but I showed that a nation's own politicians, not the IMF, got their nation into a financial mess first.

"The IMF as an entity is sent in towards the end."
Correct.

"The original problems are caused by un-repayable debt."
Don't get into (un-repayable) debt. There is no good reason for an emerging economy to borrow rashly and expect the rest of us to pick up the tab.

"The bodies who create the un-repayable debt are, in the main, the bodies who majority fund, and therefor control the IMF."
False. The bodies who "create" the debt in emerging nations are principally that own nation's politicians who over-borrow. In any case BRIC and other emerging nations have lower debt levels than most G7 countries which finance the IMF.

"... to refuse the US offer of "help" would ultimately lead to either war with the US, or the death of senior politicians, probably via an plane crash, a favourite of the CIA ..."
Unsubstantiated conspiracy theory.

Anonymous said...

http://www.zerohedge.com/article/welcome-hyperinflation-hell-following-currency-devaluation-belarus-economy-implodes-sets-blu

Anonymous said...

@ Budgie


"Unsubstantiated conspiracy theory."

Ever the cry of those who refuse to look deeper.

A simple method used, it seems, throughout history, for ever... and a branding tool more in evidence today than ever before.

Once again...Read the Book.

The School of the Americas?....

Mark said...

Anon.

Give it a rest. We know the Zeitgeists and Illuminati rule the world. We'll all members here.

Back on a more mortal etherial plane: Never attribute to malice that which is adequately explained by stupidity.

Dick the Prick said...

They had an interview with the Mexican candidate last night and he's ferking huge; wouldn't rape the chambermaid but may eat her!

Blue Eyes said...

My question is that given that we know that the Euro will go pop in some way, whether this year or next year or in five years time, and always have known that the Euro was unsustainable from the off, what do British savers/investors do to make sure their efforts do not go down with the rest of the continent?

Or should we simply be spending like there is no tomorrow?

Bill Quango MP said...

Mark - "Never attribute to malice that which is adequately explained by stupidity."

That's going in the book. Along with Blue Eyes' "The Club med economies."

I was very tempted to do a DSK conspiracy theory post. Just to see if we could all create a reasonable outline of a CIA operation. But it falls apart as soon as you realise there is no CCTV footage. What kind of spooks can't hide a camera and set up a listening device.?

Unless....?

Budgie said...

"Unless....?"

Unless the chambermaid is a CIA operative .......

Bill Quango MP said...

Budgie:
She has to be. But...

Budgie said...

"But ...."

But she may be a Bill De Burger, as well??

Y Ddraig Goch said...

"I was very tempted to do a DSK conspiracy theory post. Just to see if we could all create a reasonable outline of a CIA operation"

Does it have to be the CIA?

Who benefits from DSK's disgrace?

Let's suppose someone knew DSK well enough to know that he sometimes hired expensive, er, "escorts" to attend to his more unconventional needs. Then suppose they arranged for his next adventure to be with an attractive woman dressed as a maid - perhaps that really was his kink, or perhaps it was suggested to DSK as something new to try. Lo and behold a woman, dressed as a maid, arrives in DSK's room and he forces himself on her. Perhaps he viewed her reluctance as part of the game. Eventually, she is able to escape and make her complaint. DSK finally recognises her distress for what it is and bolts - subsequently telling various half-truths about nothing happening and then her consenting, because at first he is shocked and doesn't really understand what just happened.

Notice how small this conspiracy is. The maid's accusation is truthful and sincere. The US authorities are simply responding appropriately to a credible accusation of sexual assault.

And Nicholas Sarkozy is laughing all the way to the Elysee Palace.

How did I do?

Bill Quango MP said...

Y Ddraig Goch:
Pretty good. The maid should flee in a white Fiat Uno though.

An acquaintance, who is a friend of DSK is adamant that it is a set up. "He's just not like that."

Anonymous said...

@ Y Ddraig Goch

You waste your time with quango, there aren't enough grey cells,..... either that or he is part of the problem... or a malicious stupidity ties him to , ermmm, blindness.

CU daren't say too much either.

Early in the Irish fiasco I visited a few Irish blogs, and it was obvious from the content and intent that the blog holders were place men for the powers that were working to destroy the Irish nation.

Quango may know his field, but beyond that he is just ....... in all other areas.

At least CU knows when to stay silent, although his words on Gold betray him.

Nick knows.

Here is an article that explains things from an author with sound credentials. Try this for size.

http://michael-hudson.com/2011/05/eu-politics-financialized-economies-privatized/