Debt crisis: IMF 'suppressed signs that Europe was facing debt crisis'

[pmaitra]

Debt crisis: IMF 'suppressed signs that Europe was facing debt crisis'

The International Monetary Fund deliberately suppressed evidence that Europe was heading for a debt crisis, according to a blistering resignation letter from a senior economist at the fund.
[HR][/HR]
"The substantive difficulties in these crises, as with others, were identified well in advance but suppressed here (at the IMF)," Mr Doyle wrote in the letter to Shakour Shaalan, head of the IMF's board of directors. The letter goes on to claim that "the failure of the fund to issue them (warnings) is a failing of the first order, even if such warnings may not have been heeded".

The IMF, which has played a central role in the bail-outs of Greece, Portugal and Ireland, has recently tapped countries from the UK to China for another $500bn (£320bn) to be deployed in Europe, should the debt crisis escalate. Mr Doyle, whose 20-year career at the fund included spells in Sweden, Denmark and Israel, said its failure to give a warning has led to "suffering" in Greece and elsewhere and left it "playing catch-up and reactive roles in last-ditch efforts to save it (the euro)".

Source: Debt crisis: IMF ‘suppressed signs that Europe was facing debt crisis’ - Telegraph

To be merged later with: http://defenceforumindia.com/forum/europe-russia/38200-euro-should-now-put-sword.html

 

[Ray]

Indicates how they protect themselves, but are ready to shout from the rooftops of anything that others do and howl like a jackal on a full moon night that they (the non Whites) are making a huge mistake!

The non whites in the IMF with their hefty paychecks are but selfish stooges!

 

[panduranghari]

IMF is but a vestige of the dollar based debt system which is now 97 years old and this old man does not want to go out gracefully. There is a 12 year old upstart who is ready to accept the role of dollar with taking over the Exorbitant privilege that the USD had.

The European debt crisis has every answer within the name - DEBT crisis. The crisis which arose due to buying and selling of debt as a mode of savings. A mode of saving which has a massive counter party risk.

If the band aid solutions we see on TV about European leaders trying to fix the crisis are anything to go by, it is nothing but a facade to allow the old man to die and for the young upstart to take over. The new upstart has no lofty ideals to aspire to. It is doing it the old fashioned way. The old fashioned in the sense to permit the dollar faction which is represented by IMF and World Bank to fall on their own sword.

The first line of the Eurosystem Consolidated Financial system says it ALL.

I posted this elsewhere but here it goes again as its very appropriate.

When you understand how it is that it is economically (and therefore politically) undesirable for other major currencies to appreciate against their peer currencies (which is exactly what would happen to any currency replacing the dollar's reserve status), you will subsequently know why gold shall continue to emerge as the de facto solution to the international reserve question.

And here I emphasize de facto rather than de jure because this has become a global phenomenon driven by a natural evolution (survival and ascent of the fittest) and does not require any additional international treaty or enabling legislation as a prerequisite or for motivation.

The breeze is fair and the road ahead is clear for the ascent of gold.