Saturday, July 09, 2011

IMF returns to French control

So much for a brief period of independence for the IMF and for playing by its own rules. The IMF Executive Board yesterday approved the complete waste of another 3.3 Billion of its contributors funds (what matter its paper designation now?).

The news agency AFP, probably the most accurate news source under the present circumstances, states the following justifications:

Greece's debt sustainability hinges critically on timely and vigorous implementation of the adjustment program, with no margin for slippage, and continued support from European partners and private sector involvement," new IMF chief Christine Lagarde said in a statement.

Lagarde said the Greek bailout is "delivering important results," and the Fund predicted the country would return to positive economic growth in the first half of 2012.

"Continued support from European partners and private sector investment" seemed conditions that had previously only been attached to the second package, I had thought. The Euro Group countries are full locked in to the first Bail Out, but is there scope for a non-euro member to now halt payments? How could the private sector become involved in Bail Out One at this late stage, that seems an impossible objective, or is air-head Lagarde confused or merely being mis-reported?

Do any, but the IMF Board Members, really now believe that Greece can return to positive growth in the first half of 2012, given the disastrous job statistics from the US yesterday and plunging retail sales across the EU?

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