Thursday, June 06, 2013

IMF doesn't learn

The International Monetary Fund admitted it had failed to realise the damage austerity would do to Greece as the Washington-based organisation catalogued mistakes made during the bailout of the stricken eurozone country.

In an assessment of the rescue conducted jointly with the European Central Bank (ECB) and the European commission, the IMF said it had been forced to override its normal rules for providing financial assistance in order to put money into Greece.

Fund officials had severe doubts about whether Greece's debt would be sustainable even after the first bailout was provided in May 2010 and only agreed to the plan because of fears of contagion.

While it succeeded in keeping Greece in the eurozone, the report admitted the bailout included notable failures.

"Market confidence was not restored, the banking system lost 30% of its deposits and the economy encountered a much deeper than expected recession with exceptionally high unemployment." Guardian
IMF imposed austerity in Indonesia in 1998 during the Asian financial crisis. Its prescriptions brought much acute suffering to the population at the time (our currency was devalued 500%). We paid the IMF loan in 5 years and got rid of the policies attached with the loan.

And now these fuckers are bringing their medicine home to Europe and bringing their own continent down.

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