Tuesday, September 25, 2012 – by Staff Report
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.
- Bundesbank’s IMF rant exposes a divide at the heart of the eurozone (blogs.telegraph.co.uk)
- Bundesbank castigates IMF for saving Europe (telegraph.co.uk)
- IMF’s Lagarde Urges Europe to Implement Crisis Plans – Bloomberg (bloomberg.com)
- IMF Invokes Grexit’s Ghost (sgtreport.com)
- Lagarde: Hopeful IMF reforms in place by October (newstalk.ie)