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04 April, 2016

Lagarde completely covers the IMF economic hitmen


After the Greek PM, Alexis Tsipras, demanded from the head of the IMF, Christine Lagarde, to clarify her position, concerning the latest scandal according to the revelations by WikiLeaks, Tsipras took an answer which was more or less expected.

Recall that top IMF executives have been caught plotting to stage a “credit event” that could force Greece to the edge of bankruptcy, according to conversations revealed by WIkiLeaks.

A key part of her answer follows:

My view of the ongoing negotiations is that we are still a good distance away from having a coherent program that I can present to our Executive Board. I have on many occasions stressed that we can only support a program that is credible and based on realistic assumptions, and that delivers on its objective of setting Greece on a path of robust growth while gradually restoring debt sustainability.

Otherwise it would fail to re-establish confidence, with the implication, among others, that Greece would soon again be forced to adopt yet more measures. Of course, any speculation that IMF staff would consider using a credit event as a negotiating tactic is simply nonsense.

[...]

The team consists of experienced staff who have my full confidence and personal backing. For them to be able to do their work, as you have invited us, it is critical that your authorities ensure an environment that respects the privacy of their internal discussions and take all necessary steps to guarantee their personal safety.

Finally, the IMF conducts its negotiations in good faith, not by way of threats, and we do not communicate through leaks.

In the letter, the head of the IMF:

  • Completely covered the IMF economic hitmen (The team consists of experienced staff who have my full confidence and personal backing).

  • Demanded again more cruel measures from Greece (we are still a good distance away from having a coherent program).

  • Threatened indirectly the Greek government (Otherwise it would fail to re-establish confidence, with the implication, among others, that Greece would soon again be forced to adopt yet more measures).

In an unbelievably arrogant style, the head of the IMF understates our intelligence by saying that “any speculation that IMF staff would consider using a credit event as a negotiating tactic is simply nonsense.”, while says to the Greek PM that “it is critical that your authorities ensure an environment that respects the privacy of their internal discussions”.

In other words she demands from the Greek PM to protect the privacy of the IMF conversations between its executives, even though the latest revelations do not concern any Greek government officials, and leaked not through any Greek authority, but through WikiLeaks!

Neither the head of the IMF bothers to keep any pretexts, probably because Greece is in deep trouble, completely dependent on euro-currency and loans, which means that the creditors could blackmail the country any time they want.

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