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The neoliberal circus of Greece's creditors fully exposed after Merkel meets Lagarde


Suddenly, the bad theatrical performance by Greece's creditors has ended ingloriously after the recent meeting between the IMF head, Christine Lagarde and the German chancellor, Angela Merkel. As Deutsche Welle reports:

The International Monetary Fund (IMF) chief Christine Lagarde met with German Chancellor Angela Merkel on Wednesday to discuss Greece's debt crisis.

Lagarde said after the meeting that Greece's debt needed "significant" restructuring but that it did not require debt forgiveness from the Mediterranean nation's creditors, marking an apparent shift of her policy view.

Germany and other eurozone lenders have categorically dismissed the notion of debt forgiveness, previously placing it at loggerheads with the global financial mechanism.

Indeed, the supposed disagreement between the IMF and the eurozone so far was that the Fund was calling for a debt relief for Athens or it will refuse to part-fund latest bailout. Just remember what the IMF supported less than a year ago, up until recently:

The International Monetary Fund has called for “upfront” and “unconditional” debt relief for Greece as it warned that without immediate action the financial plight of the recession-ravaged country would deteriorate dramatically over the coming decades.

In a strongly worded assessment, the IMF said that there was no prospect of Greece meeting the draconian terms of its current bailout plan and that interest payments on the soaring national debt would eat up 60% of the budget by 2060 in the absence of debt forgiveness.

The debt sustainability analysis by the Washington-based Fund said Greece should have longer to pay, have the interest rate on its loans fixed at 1.5%, and that its creditors should make debt relief automatic once the bailout programme ends in 2018.

Compare the two statements above and decide what is the level of reliability of IMF.

It is more than obvious that the decisions are taken not on a technical basis, but on a political basis, which is irrelevant of Greece's recovery. This new development fully confirms what the blog supports constantly regarding the Greek debt crisis. As noted in April 2016:

We have seen another bad theatrical performance by the Brussels bureaufascists of the European Financial Dictatorship (EFD) and the IMF economic hitmen in the Greek drama. The representatives of the neoliberal Feudalism pretend that they have different positions concerning the unsolved puzzle of the Greek debt, while in reality, they do not care at all about "solving" it, but only to complete the neoliberal experiment in Greece to the last detail.

[...]

Poul Thomsen and Delia Velculescu, head of the IMF mission to Greece, have been caught thinking the possibility of the IMF to stage a Draghi-type “credit event” that could force Greece to the edge of bankruptcy, using the pretext of the Brexit referendum, according to recent WikiLeaks revelations.

The dialogues between Thomsen and Velculescu prove only the anxiety of the IMF to finish the Greek experiment according to the timeline, that is before the end of 2016. In reality, there is no different goal with the EFD representatives. The supposed different positions between EFD and IMF concerning the debt relief, or, the level of primary surplus target, are irrelevant. The supposedly different positions projected by the media, are aimed to disorientate the public, as always ...

We would be laughing with the neoliberal clowns and their bad theatrical performance if they hadn't destroy an entire country.

Comments

  1. Germany MASSIVE DEBT was forgiven TWICE after it caused TWO WORLD WARS and if you count the 1870 war its three in less than 100 years....if it keeps on this mafia mentality it MUST BE GIVEN A LESON AGAIN ...maybe by STOPPING PURCHASING ALL AND ANY GERMAN PRODUCTS....

    ReplyDelete
    Replies
    1. Something they have already experienced in the past.

      Delete
  2. Deutsche Welle continues:
    "What will be needed is not a haircut if the reforms are done, but a significant extension of maturity, a significant interest rate capping, and that will have to be discussed in greater detail later on as progress is made on the reform front," Lagarde said.

    Problems solved for Lagarde's term by kicking the can down the road once more.

    ReplyDelete

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