STAFF NEWS & ANALYSIS
IMF: A Corrupt Cop Policing Corruption
By Daily Bell Staff - May 12, 2016

Global corruption costs trillions in bribes, lost growth …  Public sector corruption siphons $1.5 trillion to $2 trillion annually from the global economy in bribes and costs far more in stunted economic growth, lost tax revenues and sustained poverty, the International Monetary Fund said on Wednesday. – Reuters

The IMF has just announced that doing away with corruption worldwide is “critical for the achievement of macroeconomic stability.”

The Reuters article informs us that this is “one of the institution’s core mandates.”

Our perspective is far different.

From what we can tell, the IMF and the World Bank act as a kind of macroeconomic tag team, enticing third world countries with massive loans and then ripping apart whole economies when the loans aren’t paid back on time.

We arrived at these insights in part due to John Perkins’ famous book, Confessions of an Economic Hit Man.

Here’s how TruthOut described the book during a 2014 interview with Perkins:

John Perkins is no stranger to making confessions. His well-known book, Confessions of an Economic Hit Man, revealed how international organizations such as the International Monetary Fund (IMF) and the World Bank, while publicly professing to “save” suffering countries and economies, instead pull a bait-and-switch on their governments: promising startling growth, gleaming new infrastructure projects and a future of economic prosperity – all of which would occur if those countries borrow huge loans from those organizations.

Far from achieving runaway economic growth and success, however, these countries instead fall victim to a crippling and unsustainable debt burden.

Reuters is reporting on a different and much more positive and responsible IMF. It’s portraying an IMF that is devoted to fighting corruption in order to benefit citizens around the world.

According to Reuters, “The Fund argues that strategies to fight corruption require transparency, a clear legal framework, a credible threat of prosecution and a strong drive to deregulate economies.”

But here, from The Daily Mail, posted in early April:

The IMF officials said a threat of an imminent financial catastrophe was needed to help reach a ‘decision point’, convincing German chancellor Angela Merkel on debt relief and Greece into accepting IMF “measures” against pensions and working conditions, said the transcript.

In other words, only a month or so ago, IMF officials were discussing a way to fake “financial catastrophe” to move Greek negotiations along.

Is that part of the “transparency” that the IMF seeks? Here’s what Perkins told TruthOut about Greece:

 I want to draw upon Greece’s history. You’re a proud, strong country, a country of warriors …  I would encourage the people of Greece to stand up: Don’t pay off those debts; have your own referendums; refuse to pay them off; go to the streets and strike. And so, I would encourage the Greek people to continue to do this.

… Don’t accept this criticism that it’s your fault, you’re to blame, you’ve got to suffer austerity, austerity, austerity. That only works for the rich people; it does not work for the average person or the middle class.

Build up that middle class; bring employment back; bring disposable income back to the average citizen of Greece. Fight for that; make it happen; stand up for your rights; respect your history as fighters and leaders in democracy, and show the world!

Perkins is exhorting Greeks to confront the IMF and the EU when it comes to the “austerity” that has been inflicted on the country.

Seen from Perkins’s standpoint, the problems affecting Greece are predictable enough. The country couldn’t pay back its sovereign debt in a timely manner and now Greeks have lost savings, pensions and  whole bank accounts.

But Reuters is not writing about the IMF that Perkins is portraying.

The IMF  paper – as Reuters reports it –  doesn’t deal with any of these troubling issues. The crux graf of the Reuters’ article is this one:

 [The IMF] said corruption’s indirect costs are substantially higher, reducing government revenues by encouraging tax evasion and reducing incentives to pay taxes, leaving less money available for public investments in infrastructure, health care and education.

We just wrote about this the other day. On what planet do international bureaucrats find that government revenues are in any sense appropriately or efficiently delivered?

Services provided by the -European Union are so lamentable that up to half of the countries now in the EU want to have referendums on leaving.

In the US huge amounts of tax revenue goes to the military-industrial complex, which in turn is fighting a “war” against terrorism. But if one uses available, public reports on the Internet, it soon becomes clear that war is a phony one and the terrorists have actually been put in place by US facilities.

Once more, the IMF seems to have a different grasp of reality regarding taxes and the way governments function.

More from Lagarde:

“Corruption also has a broader corrosive impact on society. It undermines trust in government and erodes the ethical standards of private citizens,”

And here is the real reason for this sudden attack on global corruption:

Lagarde is due to participate in a British government-sponsored anti-corruption summit in London on Thursday that will include U.S. Secretary of State John Kerry and other senior officials including the presidents of Nigeria and Afghanistan.

We can see that the global regime we’ve covered previously is being put into place. First came the Panama Papers and now a more general attack on “corruption.”

Conclusion: This is part of an international power grab. The IMF and other agencies controlled by the West, and by the US and Britain in particular, are being repositioned as more aggressive, international regulators. Will this fight against international corruption yield positive results? Not really. It will simply endow obviously corrupt entities like the IMF and World Bank with even more power … and thus enhance the misery they already inflict.

 

Tagged with:
Posted in STAFF NEWS & ANALYSIS
  • Bruce C.

    How does the IMF, or anyone else for that matter, know what the costs of corruption are? The IMF may just be making those numbers up to justify a higher budget for itself.

    Not that voters get to vote on something like this, but I would hope someone like Trump would say to Lagarde, “Well, since by your own admission you all suck at stopping corruption and never seem to actually help any country that you try to help, I’m going to suggest the entire IMF be shut down on the basis of incompetence.”

  • Praetor

    Just like mobsters. The mobster with the biggest muscles, always will try and take over the other mobster turf, by force. And the turf being fought over, has some innocent inhabitance who will suffer, because of this turf war. IMF/World Bank biggest mobsters on the planet, at this time!!!!

  • The IMF is also a RAPIST – the IMF is raping my country as I speak – and will continue to rape yet unborn citizens of my poor destitute country of 2.7 million souls – and the amazing thing is that those persons with (an education) – who should speak out against this wanton rape – are happy to go along with the rape – while at the same time these individuals form “Integrity Associations” to lambast the poor about corruption – while never mentioning the IMF / World Bank / Inter-American / USAID / Development Bank / etc / — it all so very sad…..

    • crossbrit

      It`s all so very corrupt……

      • It is not just that these institutions are perverse and corrupt – but equally that hey pervert and corrupt your representatives – who then try to tell you as a citizen that Salt & Pepper is really Sugar – just try it and see.. maybe you remember that British Member of Parliament eating a beef-burger – and trying to encourage ordinary people to do the same – in the middle of the mad-cow catastrophe…

  • william beeby

    Greece is just the first. Many countries are as indebted as Greece or worse actually . The UK can print money , Greece ,Portugal , Ireland ,Italy cannot because they are in the EURO . This only delays the day of reckoning for the UK of course. There are now far too many countries in the EU for it to work in any way to benefit its members. The US has encouraged all the ex-Soviet states to join so they can thereby enlarge NATO even though countries like Hungary will gain nothing from membership . Its ALL corrupt and I will vote to EXIT the EU in June here in the UK.

    • Bruce C.

      Excellent choice

    • crossbrit

      So will I be voting OUT of the sinister EU-SSR…….but because of the endemic corruption within British politics as a whole, the chances of a transparently fair and above board referendum are very slim indeed!

      One thing I have learned when marking my voting cross – ALWAYS use a black ball-point, and NEVER to use the pencil supplied.

  • Pilgrim

    Having achieved their position by corruption, they now want to end corruption to prevent others from rising to positions capable of toppling them so only they may operate through corruption, having established themselves as the corruption police.

    Sublime comedy, and at the same time abominate tragedy.

loading
Sign up now and join our exclusive international network for free-market thinkers
Privacy Assured: We will NEVER share your personal information.