Another wonderful piece by NWL:
Paul Sommerville was making the point that the IMF don’t do anything - they just simply lend you money with onerous conditions to make sure they get their money back. It’s up to the usual suspects to make sure they get repaid.
I would be more interested to see what would happen if the IMF was invited in and they simply said “No Thanks! You guys are super-fucked!”
No bond market. No IMF.
Real decisions would have to be made by us, ourselves!
I thought the way they worked was they give us a list of conditions of what we have to do. Then each time me meet a certain number of those conditions they give us money???
Then you probably would be in deposit confiscation territory.
I think the targets they set are just cash amounts of savings. They don’t care how you get them or if you reform your cartels etc.
Are you sure about this WGU? I get the impression that they put implicit pressure on governments to reform. ie. if governments don’t read between the lines, they don’t get loans.
I’m basing this on former chief economist of the IMF, Simon Johnson, saying in an article last year:
I note he was talking about the US in this article, and drawing parallels to emerging market countries. And I think the IMF have enough sense to know that if they DON’T apply pressure for political reform here, then it is likely that any money they lend us will be spent on Eamon Ryan’s madcap schemes; and ill-advised attempts to prop up the property market and keep the sector in big salaries; and on the quango class; and all the rest of the politically motivated spending this country engages in… ie. Bye bye IMF money!
I think I found one version of that article. Simon Johnson lays out his view on the IMF decision-to-lend process.
Edited for spelling
the IMF ‘helped’ Argentina. They lent them money when nobody else would. They made them cut their deficit, reduce domestic spending and benefits for the elderly, reduce social welfare payments, cut to public servants wages. Sounds familiar doesnt it.
This is what got them into this mess.
The main problems that Argentina had were nothing to do with globalisation or market liberalisation. The real problem was the currency peg to the dollar.
Some IMF stuff on Iceland:
Key seems to be:
Thanks but that was in one of the articles I quoted.
My point is that the Irish government are broadly carrying out what the IMF recommended for Argentina. The causes are a moot point as we now find ourself in a similar position (see Morgan Kelly article today which references Ireland being as screwed as Argentina).