News & Analysis
Evolution of the IMF Is Directed History
Bundesbank castigates IMF for saving Europe ... Germany's central bank has launched a blistering attack on the International Monetary Fund, accusing officials of spraying around money like confetti and overstepping their legal mandate. The Bundesbank said the IMF was right to help rescue Greece, Ireland and Portugal but said monitoring levels were slipping and there had been a 'watering down' of standards. "The IMF is evolving from a liquidity mechanism into a bank. This is neither in keeping with the legal and institutional role of the IMF or with its ability to handle risks," said the Bundesbank in its monthly report. The bank said the Fund was right to help rescue Greece, Ireland and Portugal but said monitoring levels were slipping and there had been a "watering down" of standards. The scale of loans risks "overwhelming the IMF's institutional structure". – Telegraph
Dominant Social Theme: The IMF is doing what it needs to do.
Free-Market Analysis: We have pointed out in numerous articles that the authoritarian evolution of the EU seems planned. In the past, top EU officials made plain statements that various crises could precipitate a political union.
These people are not stupid. They are living and breathing the creation of a super-state and having created it they know full well the realities of it and its limitations.
EU Continues to Go Down the Wrong Track
Nothing here is apparently left up to chance. An economic union was created first to generate an initial consensus. But those behind the union could NOT have been surprised when it all fell apart.
It is always treated with great surprise when large institutions experience difficulty. But as believers in directed history, we are skeptical of the idea that those at the top didn't understand fully what was about to occur.
First of all, central banking always implodes – cyclically. Those running the EU knew there would be a financial disaster, not just because of the setup of the EU but because of the way finance operates.
Second, we recall the tremendous pressure countries came under to join the EU. We've even tried to present the mechanism as we understand it.
It is the old World Bank strategy. Those at the top that want ever-closer world government stick to what they've developed. In developing countries, the World Bank provides funds to top politicos who then often abscond with the funds.
In this case, the same thing occurred. Various banks offered funds via government and the funds were wasted or stolen. But no one ever thinks to explore WHY Western banks offered Greece and other countries so many billions, eventually forging the sovereign crisis.
Anyone looking at the situation logically could have predicted the outcome. The only logical conclusion is that the officers of these large commercial banks had some level of certainty that they would be paid back.
They would be paid back, we can surmise, because of the EU mechanism that would utilize commercial bank lending as a trigger to tighten a political union that would in turn allow a continued bailout.
It all fits together. Not only that but also this system is the one that entraps developing countries. Once they take their World Bank loans and dissipate the funds, the IMF comes in and insists on austerity measures, higher taxes and fewer government services.
The IMF, in other words, or the IMF system, is being imposed on Western countries. First, bankrupt the nation by lending to corrupt politicos and then come in with the IMF to insist on austerity.
Part of austerity can be profitable to Western interests since various entities under government ownership are often privatized or liquidated.
In the West, public opinion has been fairly sanguine about the depredations of the IMF. But not so now. Europe is aflame today. The problem with the systems that have been created to harass developing countries is that sooner or later their methods of operation will be brought to bear on "developed" ones.
Here's some more from the article:
The unprecedented attack came as the IMF's chief, Christine Lagarde, called for urgent measures across the world to head off a fresh global slump. While praising the latest emergency measures of central banks in the US, Europe and Japan, she said this was not enough to secure recovery.
The Europeans must activate their new machinery, while the US must prevent a "dramatic tightening" of fiscal policy later this year. Failure to act "would effectively plunge the country off a 'fiscal cliff'", cutting US growth by up to 2pc. She said this would pose a "serious threat for the global economy".
Ms Lagarde also said emerging economies need to bolster their defences against "potential spill-overs", if necessary by injecting "additional stimulus".
We can see the head of the IMF calling for politically oriented solutions to augment economic ones. It is predictable, even chilling. One gets the feeling Europe is being ground up in a great maw, and that the mastication and digestion were planned long ago – as indeed they were.
The question remains then only whether German indignation is real or not. But how can we believe that indignation from the top down is credible?
Those at the Bundesbank work for the same money power as the Eurocrats. One may detect credibility or sincerity in the complaints as regards the IMF but we would also consider the possibility once more of directed history.
We are supposed to believe that, "Ms Lagarde's Keynesian team is deeply at odds with Germany's hard-money hawks. A leaked memo from Germany's finance ministry previously called the IMF the 'Inflation Maximizing Fund' after it suggested that a burst of inflation might lift the world off the reefs."
But these discussions are created via Hegelian dialectics. The German irritation is matched by IMF acitivism and gradually a middle way is discovered.
The real hope for opposing a gathering political solution for the EU is the people of the EU themselves. In Greece, Spain and Portugal there is growing resentment to IMF dictats and austerity. In the so-called North of the EU, there is resentment and opposition to further centralization as well.
The end of the article quotes an EU official as saying that Eurocrats "always find a solution in the end." But at what cost?
The entire EU project is one of arrogance and eventual bloodletting. Such forced mergers of hundreds of millions of people cannot end well.
The optimistic view is that what we call the Internet Reformation is gradually enlightening people in Europe about the plans that are being hatched for their further regionalization.
Conclusion: Those within the EU may believe that a solution furthering the union is inevitable. But other solutions are increasingly available, too. Centralization, hopefully, is not the only option.
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Posted by Abu Aardvark on 09/26/12 06:31 AM
@ laceja on 09/25/12 08:43 PM
I'm afraid you're right, and that I have to agree with Arthur Schopenhauer:
"Apropos, ich lege hier für den Fall meines Todes das Bekenntnis ab, dass ich die deutsche Nation wegen ihrer überschwänglichen Dummheit verachte, und mich schäme, ihr anzugehören."
(Speaking of, in the event of my death I profess here that I despise the German nation for its exuberant stupidity, and am ashamed to belong to her.)
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Posted by laceja on 09/25/12 08:43 PM
The Germans are like the proverbial frog, put into cold water and then set on the stove to boil. They are being led to believe their "leaders" are acting in their best interest to protect them from the ravages of the socialists in France, Greece, Italy, Portugal, and Spain. By the time they realize what's happening, they will already be boiling and unable to jump out of the pot. They will grasp at the helping hand of the one world government and one world currency, because there will be nothing else to hang onto.
The rest of us have already been cooked and we just don't know it yet.
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Posted by Danny B on 09/25/12 05:59 PM
Could there be a battle going on behind the scenes?
First, we see Strauss-Kahn dragged in the mud. Now, it's Deutches bank.
Click to view link
I know the LAPD very well. This is completely out of the norm. It WAS staged.
Another, FOA and FOFOA have all mentioned that the battle was between BIS and IMF.
The bankers have always used their magic paper to obtain [steal] tangibles.
It's starting to kick in now.
Click to view link
Click to view link
Once the big sharks show up, there will be wholesale plunder of resources and infrastructure. Reportedly, the PTB wants the NDAA so that the army will protect their property instead of just the police.
Click to view link
I suppose that this is the Russian model rather than the Argentine model.
The pheasants are phucked.
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Posted by Ratico on 09/25/12 01:18 PM
Nobody knows what's going to happen next. You state in your artical you are aware what's going on, so please, tell us how you know "that the mastication and digestion were planned long ago".
This is the point of my previous comment. I think what you are alluding to is of much more importance than your what artical implies. The internet reformation is underway but it's up to us to share knowledge. Of course the world is controlled, I thought that was common knowledge.
But again, thank you. It is extremely important the people know what is happening and your artical at least alludes to it.
Reply from The Daily Bell
Thanks.
"Tell us how you know that the mastication and digestion were planned long ago."
We provide the link here ..
Click to view link
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Posted by Ratico on 09/25/12 12:54 PM
"Anyone looking at the situation logically could have predicted the outcome. The only logical conclusion is that the officers of these large commercial banks had some level of certainty that they would be paid back."
Or they were told to do it by their puppet masters whom they cannot question. Good artical and thank you. But I wonder if we should use more than logic to figure out what their sick, twisted plan realy entails, like Monsanto. If you are aware "that the mastication and digestion were planned long ago", then why are we reading an artical about what we knew. The evolution of our world as we know it is "directed history" and the place they are directing it is far scarier then your research could ever show. Help the people by reporting what we don't know.
Thanks.
Reply from The Daily Bell
We report on dominant social themes and try to show the existence of promotions. We DON'T know what's going to happen next. It's the Internet versus the powers-that-be. If YOU know, please provide such knowledge. We are not prepared to present the outcome of this biggest of all contests ....
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Posted by Abu Aardvark on 09/25/12 12:15 PM
DB: "Nothing here is apparently left up to chance. An economic union was created first to generate an initial consensus. But those behind the union could NOT have been surprised when it all fell apart."
AA: You're too kind. In fact, the "crisis" runs its course, apparently exactly as planned (ironically, revealed by the Telegraph as well):
"In the 1980s, though, that other great integrator Jacques Delors (second only to Monnet in his influence on the drive to European political union) decided to ignore the advice of McDougall and others and to launch the single currency without the suggested preconditions. To move straight to fiscal union, he knew, was not on the cards. But if the single currency was put in place first, it would create exactly the kind of strains which had been foreseen - making fiscal union the only way out."
Click to view link
And here's Germany's Federal Minister of Finance Wolfgang Schäeuble, most reliable elite stooge for decades now, spilling the beans in the NYT:
'There is a limited transition period where we have to manage the nervousness on the markets,' Mr. Schäuble said. 'If it is clear that by the end of 2012 or the middle of 2013 that we have all the ingredients for new, strengthened and deepened political structures together, I think that will work.'
He sees the turmoil as not an obstacle but a necessity. 'We can only achieve a political union if we have a crisis,' Mr. Schäuble said."
Click to view link
See also:
"Euro-federalists financed by US spy chiefs"
Click to view link
"The EU's architects never meant it to be a democracy - The rise of a "technocracy" was always part of the plan for Europe"
Click to view link
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DB: "We are supposed to believe that, "Ms Lagarde's Keynesian team is deeply at odds with Germany's hard-money hawks."
AA: No such thing as a "hard-money hawk" in central banking. Unfortunately many Germans fell (and still fall) for the hoax of the supposedly 'hard' Deutsche Mark, when in reality it 'lost' about 75% of its purchasing power due to credit expansion from 1948 to 2002.
Gee, even Wikipedia gets it right:
"Stability of the German mark - The German mark had a reputation as one of the world's most stable currencies; this was based on the monetary policy of the Bundesbank. The policy was "hard" in relation to the policies of certain other central banks in Europe. The "hard" and "soft" was in respect to the aims of inflation and political interference. This policy was the foundation of the European Central Bank's present policy towards the euro. The German mark's stability was greatly apparent in 1993, when speculation on the French franc and other European currencies caused a change in the European Exchange Rate Mechanism. However, it should be remembered that "hard" is relative only if it is compared to other currencies, as in its 53 year history, the purchasing power of the German mark was reduced by over 70%."
Click to view link
See also:
Click to view link
Reply from The Daily Bell
AA: No such thing as a "hard-money hawk" in central banking. Unfortunately many Germans fell (and still fall) for the hoax of the supposedly 'hard' Deutsche Mark, when in reality it 'lost' about 75% of its purchasing power due to credit expansion from 1948 to 2002.
Good point.
