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EU’s Greek Debt Austerity Plan Rejected By the IMF
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I have maintained since the so-called Greek Debt “crisis” began back in 2010, I believe it was,
that the imposition of austerity on Greece could not possibly work and that the only solution was to write down the debt to a level that Greece could service and introduce reforms that loosen the hold the oligarchs have on the Greek economy. The current Greek government has taken the same position, and now the IMF has joined us.

The IMF has said that debt relief measures, that is, write-downs, are necessary and that this necessary measure goes far beyond what the eurozone has offered so far. Asked if the plan could succeed without debt relief, the director of the IMF said, “categorically, no.”

This has been obvious from the beginning to any economist worthy of the name. The fact that
it has taken five years to establish an elementary fact shows how rapacious are the rich. Moreover, it proves in my opinion that the “crisis” was never about debt. It was about using the debt as a weapon to establish that creditors are not responsible for their mistakes when they overlend, and to force the centralization of member states’ tax and spending policies in the EU.
The austerity plan does not address debt. It imposes a draconian fiscal policy on the Greek government.

(Republished from PaulCraigRoberts.org by permission of author or representative)
 
• Category: Economics, Foreign Policy • Tags: Eurozone, Greece, IMF 
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  1. bossel says:

    now the IMF has joined us

    Man, your cognitive functions are really slow, aren’t they? The IMF has had this position at least for several months now (maybe longer, got a bad memory).
    Funny enough, the IMF doesn’t want its own Greek debt included in that.

    • Replies: @tbraton
  2. tbraton says:
    @bossel

    “The IMF has had this position at least for several months now (maybe longer, got a bad memory).
    Funny enough, the IMF doesn’t want its own Greek debt included in that.”

    The IMF was dragged into the original “bailout” back in 2010 even though its participation violated its own rules. The Financial Times quotes the former Greek Minister of Finance as follows:

    “According to its own rules, the IMF cannot participate in any new bailout. I mean, they’ve already violated their rules twice to do so, but I don’t think they will do it a third time,” said Mr Varoufakis. “Dr Schäuble and the IMF have a common interest: they don’t want this deal to go ahead.” http://www.ft.com/cms/s/0/4c7b7f2c-36b5-11e5-bdbb-35e55cbae175.html#ixzz3hUhgIsfn

    From the beginning, the IMF insisted that a write off of Greek debt was necessary to reduce it to a sustainable level which Greece could realistically pay off. By twisting its arm and forcing the IMF to participate in the original bailout, France and Germany and the U.S.,in effect, used IMF money to bail out French and German banks, which held the great preponderance of Greek debt. So it’s understandable that the IMF wants all its money back. They should have listened to the IMF back in 2010, forced the banks to write down the Greek debt and allowed Greece to exit the Euro. It was a big mistake for Greece to enter the eurozone in 2000.

  3. All that’s happened is that the tools that the West has used to loot the rest of the world are now being used against the west.

    Quelle surprise!

  4. Pacific says:

    Pay Up EU or we let the Refugees flood in!

    You want more Muslims??

    and see you again same time and place in 6 months…

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