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.
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.
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.