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Posts tagged ‘Dominique Strauss-Kahn’

Articles of Association of The IMF

Sent in to us yesterday


I attach an excerpt from the Articles of Association of The IMF which might be of interest to your readers.

Excerpts Article IX, Section 1 – 9:

Articles of Agreement of the International MonetaryFund and International Bank for Reconstruction and Development. Adopted at Bretton Woods, New Hampshire, July 22, 1944.

The fund shall have full judicial personality.

Shall have immunity from judicial process.

Property and assets of the Fund, wherever located and by whomever held, shall be immune from search, requisition, confiscation, expropriation, or any other form of seizureby executive or legislative action.

The archives shall be held inviolable.

All property and assets shall be free from restrictions, regulations, controls, andmoratoria of any nature.


The officers and personnel shall be immune from legal processes, immigration restrictions,alien registration requirements, and national service obligations; shall be immune from taxation and custom duties, immune from liability for taxes andduties.No taxation of any kind shall be levied on any obligation or security, dividend or interest of the Fund…


see also link : http://www.facebook.com/notes/keanepr/renegotiating-the-bailout-so-who-or-what-is-the-imf-and-will-ireland-get-a-heari/179950962042326


Christine Lagarde named new IMF chief (More bad news)

This is very bad news for Ireland and we are now in deep shit,
this insider is willing to destroy the nation of Ireland just to keep German
and French banks from paying for their bad bets on toxic Irish banks. This she
hope to do by forcing small nations like Ireland to pay for their lack of due
diligence in their dealings with various banks around the EU. The German and French
banks broke their own rules to turn a quick buck and got caught out when the bubble
burst. So now the big bondholders have brought in their insider to secure the
final push to get the taxpayers of Europe to stump up for their losses .This is
a black day for Ireland and every other small nation in Europe. Last week Irish
Finances minster Noonan was warming up to her but she looks as cold as my
fridge  freezer and Noonan ‘s charm is
just as false and this Ice queen knows it !

Last week Irish Finances minster Noonan was warming up to her

but she looks as cold as my fridge freezer and Noonan ‘s charm is just as false

and this Ice queen knows it !


The IMF = “shake-down artists” Gansters to you and me !

The IMF = “shake-down artists” Gangsters to you and me! So
why are the Irish Government doing business with these mafia well because there
are gangsters themselves .We the people of Ireland should take a leaf out of
the fighting Icelanders  book and get back our Celtic heritage and fight these crooks .this is not our problem it’s the problem of the bondholders who gambled on toxic banks.I say let them have these toxic banks and bring the traitors in the Dail to justice !

We Have Studied The Odds, The Bets are On?

By Donal Buckley

Freelance Journalist/ Writer

In the world of horse racing and betting there are high
risks and the betting odds reflect the bookies’ evaluations.

Some punters identify the value of a good jockey and back
the rider every time.

In dog racing choice of numbers is one way of betting on a

In the Euro zone economic disaster of 2011, no country, no
economist, no central banker and no politician or group of politicians have any
idea of how to deal with this disaster for the Euro.

To maintain any sanity in this madhouse of experts and
professionals it may be argued that a person should identify one “jockey” and
place trust and belief in the value of one opinion.

After “studying form” my bet is on the IMF if only because
the IMF is outside the Euro zone and hopefully above the petty squabbling of
the member nations.

A footnote:

Are the Irish Punt printing presses in good order and ready
to roll at the Central  Bank of Ireland?

Print now and then talk to the EU/ECB/IMF about
our terms

All US Gold Gone? Russia says IMF Chief Jailed for Discovery.

By: Sorcha Faal

According to a FSB secret report, Strauss-Kahn had become “increasingly concerned” earlier this month after the United States began “stalling” its pledged delivery to the IMF of 191.3 tons of gold agreed to under the Second Amendment of the Articles of Agreement signed by the Executive Board in April 1978 that were to be sold to fund what are called Special Drawing Rights (SDRs) as an alternative to what are called reserve currencies.

This FSB report further states that upon Strauss-Kahn raising his concerns with American government officials close to President Obama he was ‘contacted’ by ‘rogue elements’ within the Central Intelligence Agency (CIA) who provided him ‘firm evidence’ that all of the gold reported to be held by the US ‘was gone’.

Upon Strauss-Kahn receiving the CIA evidence, this report continues, he made immediate arrangements to leave the US for Paris, but when contacted by agents working for France’s General Directorate for External Security (DGSE) that American authorities were seeking his capture he fled to New York City’s JFK airport following these agents directive not to take his cell-phone because US police could track his exact location.

Once Strauss-Kahn was safely boarded on an Air France flight to Paris, however, this FSB report says he made a ‘fatal mistake’ by calling the hotel from a phone on the plane and asking them to forwarded the cell-phone he had been told to leave behind to his French residence, after which US agents were able to track and apprehend him.  

Within the past fortnight, this report continues, Strauss-Kahn reached out to his close friend and top Egyptian banker Mahmoud Abdel Salam Omar to retrieve from the US the evidence given to him by the CIA. Omar, however, and exactly like Strauss-Kahn before him, was charged yesterday by the US with a sex crime against a luxury hotel maid, a charge the FSB labels as ‘beyond belief’ due to Omar being 74-years-old and a devout Muslim.

In an astounding move puzzling many in Moscow, Putin after reading this secret FSB report today ordered posted to the Kremlin’s official website a defense of Strauss-Khan becoming the first world leader to state that the former IMF chief was a victim of a US conspiracy. Putin further stated, “It’s hard for me to evaluate the hidden political motives but I cannot believe that it looks the way it was initially introduced. It doesn’t sit right in my head.”

Interesting to note about all of these events is that one of the United States top Congressman, and 2012 Presidential candidate, Ron Paul [photo bottom left] has long stated his belief that the US government has lied about its gold reserves held at Fort Knox.  So concerned had Congressman Paul become about the US government and the Federal Reserve hiding the truth about American gold reserves he put forward a bill in late 2010 to force an audit of them, but which was subsequently defeated by Obama regime forces.  

When directly asked by reporters if he believed there was no gold in Fort Knox or the Federal Reserve, Congressman Paul gave the incredible reply, “I think it is a possibility.”

Also interesting to note is that barely 3 days after the arrest of Strauss-Kahn, Congressman Paul made a new call for the US to sell its gold reserves by stating, “Given the high price it is now, and the tremendous debt problem we now have, by all means, sell at the peak.”

Bizarre reports emanating from the US for years, however, suggest there is no gold to sell, and as we can read as posted in 2009 on the ViewZone.Com news site:

“In October of 2009 the Chinese received a shipment of gold bars. Gold is regularly exchanges between countries to pay debts and to settle the so-called balance of trade. Most gold is exchanged and stored in vaults under the supervision of a special organization based in London, the London Bullion Market Association (or LBMA). When the shipment was received, the Chinese government asked that special tests be performed to guarantee the purity and weight of the gold bars. In this test, four small holed are drilled into the gold bars and the metal is then analyzed.

Officials were shocked to learn that the bars were fake. They contained cores of tungsten with only a outer coating of real gold. What’s more, these gold bars, containing serial numbers for tracking, originated in the US and had been stored in Fort Knox for years. There were reportedly between 5,600 to 5,700 bars, weighing 400 oz. each, in the shipment!”

To the final fate of Strauss-Kahn it is not in our knowing, but new reports coming from the United States show his determination not to go down without a fight as he has hired what is described as a ‘crack team’ of former CIA spies, private investigators and media advisers to defend him.

To the practical effects on the global economy should it be proved that the US, indeed, has been lying about its gold reserves, Russia’s Central Bank yesterday ordered the interest rate raised from 0.25 to 3.5 percent and Putin ordered the export ban on wheat and grain crops lifted by July 1st in a move designed to fill the Motherlands coffers with money that normally would have flowed to the US.

The American peoples ability to know the truth of these things, and as always, has been shouted out by their propaganda media organs leaving them in danger of not being prepared for the horrific economic collapse of their nation now believed will much sooner than later.    


IMF: Names keep on rolling in

Monday, May 30, 2011 –
 by Staff Report from the Daily Bell

Christine Lagarde

Why Christine Lagarde should never be head of the IMF … Christine Lagarde is in poll position. Having put her name forward last week, the silver-haired French finance minister may well become the new managing director of the International Monetary Fund (IMF). Lagarde has, with a depressing inevitability, secured the backing of most European countries. The UK was among the first to endorse her. There are rumours the mighty US could soon throw its weight behind Lagarde – making her bid a fait accompli. Europe seems determined to retain its prerogative of appointing the boss of the world’s most important financial watchdog. Throughout the IMF’s 65-year history, all 11 bosses have been from Western Europe. In return for allowing this stitch-up, America has traditionally provided the IMF deputy, while securing the top spot at the World Bank. – UK Telegraph

Dominant Social Theme: At this most critical time, this Western powers are about to make a critical mistake regarding this critical facility!

Free-Market Analysis: There seems to be emerging consensus in the constitutionally suspicious alternative Internet press that Dominique Strauss-Kahn was “stung” for any one of a variety of reasons. It was not rape, therefore, that brought him down but his effectiveness in dealing with the EU’s economic crisis.

Alternatively, we have read, his arrest provided a distraction from the real and serious failures surrounding the great powers ability to deal with the unfolding crisis.

Finally, there is the idea that DSK wanted to continue to rejigger the voting mechanisms of the IMF. The US currently holds 17 percent of the votes in the IMF and IMF bylaws demand a majority of 85 percent for any substantial moves or changes in policy. Thus, the IMF is the US’s creation and is beholden to it.

Anyway, we’ve stayed away from speculating. We don’t seen any specific promotional value in what happened to DSK, other than to reinforce the meme that American justice is absolutely pure and non-discriminatory. But that’s a pretty small, sub dominant meme, not one that would seem especially worth reinforcing at this point in time.

While we are not tempted to join the fray regarding DSK conspiracy theories, we have presented on several occasions the one powerful dominant social theme that has predictably emerged from the affair, which is that the IMF is an incredibly important institution and that its leaders are really, really, really important people.

In fact, if there were no IMF and no leadership it is likely – so we are informed – that the world’s economies would probably collapse sooner rather than later. You can see our previous articles on the topic here:



We recently analyzed the memes in an article by Joseph Stiglitz on this topic, entitled, “The IMF cannot afford to make a mistake with Strauss-Kahn’s successor.” Now the UK Telegraph has issued yet another jeremiad on the importance of the IMF from columnist Liam Halligan. This focuses on the meme of IMF-as-most-important-institution-ever.

The institution he writes, “needs to reflect the extent to which the world has changed since it was launched from the ashes of the Second World War.” Why? Because the markets could soon face another “Lehman moment.” Lehman Brothers is widely held to have destabilized global markets in 2008.

From this (fallacious in our view) perspective, Halligan goes on to argue that it would be a “historic” mistake to appoint a European to head the IMF, especially given that non-Western countries compose most of the world’s population now, some 80 percent. He cites other statistics too: The world’s markets produce half the GDP and out-trade the West. They hold most of the world’s currency reserves and are not mired in debt.

The IMF, he concludes, needs a leader from the developing world, a world that has arranged its finances better than the Western world. The West does not have a moral argument to make regarding IMF leadership. The mess it has made collectively of its finances has removed its credibility and “moral authority.”

Halligan is also upset over the idea that the new leader of the IMF might be what he calls a “politician.” Halligan claims the IMF “works properly” when it is taking an adversarial role and “banging political heads.” The IMF must be seen as “tough – even unreasonably tough … an IMF that colludes with the political classes isn’t enacting reform. It is simply helping the politicians bury their mistakes and kick any problems into the long grass where they will fester.” Here’s some more from the article:

The IMF should be respected – even feared. It is for the politicians to stand up and face the political music – explaining to their electorates why harsh actions are needed and why nations can’t go on living beyond their means. Perhaps the most dangerous type of politician to run the Fund is a politician still hankering after high office. Strauss-Kahn, of course, was using the post and the influence it bestowed over trillions of dollars of bail-out cash, as a platform for a French presidential bid. As such, he turned the IMF into a soft-credit society for the eurozone’s periphery nations, holding the single-currency together for the benefit of his Franco-German friends.

Strauss-Kahn’s continued insistence on “just one more bail-out”, rather than forcing Greece, Portugal and the rest to face up to genuine debt-restructuring, also made sure that the losses stayed with plebian taxpayers, rather than being shifted on to Europe’s banks. He could have called in the favour, no doubt, when the need came to finance his campaign for the ultimate prize. It was not to be for Strauss-Kahn, of course. But what is to stop Lagarde following the same route? …

Running the IMF, now more than ever, requires economic expertise, massive intellectual authority and a willingness to be deeply unpopular – particularly, if you are a European, on your home turf. The emerging economies need to stop moaning, put their differences aside, and set their combined authority behind a world-class economic policy-maker to run the IMF. Such nations should be doing everything in their power to wrestle control of this pivotal institution from a Western political elite that is not only intellectually inadequate, but which seems determined to compound the world’s economic problems …

Halligan is convinced that Lagarde has her own unfortunate political ambitions. As we can see from the above excerpt, he seeks a person of “massive intellectual authority” – and believes that person can only be found in the developing world.

We wonder exactly why somebody of massive intellectual authority would want to run the IMF in the first place. Anyone with massive intellectual authority would realize that the IMF is a dysfunctional organization that was constructed to increase Western dominance over the developing world, not to “help” countries recover from excessive debt.

The IMF is part of a fiscal and monetary tag team with the World Bank. The World Bank encourages dysfunctional, developing-world leaders to borrow more than their countries can withstand. Once the money has been wasted or spirited away, the country is effectively broke and the big western banks call for the IMF to step in.

The IMF’s solutions are always the same. They tend to crush the middle class by reducing public subsidies and hiking taxes. Then they put tremendous pressure on remaining government officials to sell off a country’s prime assets under the pretext that these are assets that need to be privatized. In truth these are mostly monopoly assets, like water and electrical facilities – and thus even privatization does not remove the monopoly status. One has just transferred a public monopoly into private hands. The profits are tremendous.

It is hard to avoid the conclusion (we won’t) that the EU acted as the World Bank when it came to Europe’s PIGS. These southern countries were given tremendous amounts of cash to supposedly make them financially healthy – or healthy enough to join the EU. But in addition to outright grants were numerous huge loans that were presented to all these countries during the faux-boom of the 2002-2007, many no doubt with EU cooperation. Now that the bill has come due, the EU is cynically calling on the IMF to ensure these countries make their payments.

Why isn’t it working this time? Why have the protests only become stronger and deeper, threatening to tear apart the entire EU? We’ve presented the idea that the Internet itself has helped mobilize people in a way that Western elites were not expecting. Instead of crushing European middle classes and strengthening the EU, Eurocrats are discovering they may fundamentally weakened it and the euro besides.

The IMF, of course was supposed to play an integral role in this slaughter of the PIGS. The IMF is always involved in such pillaging. Of course, Anglosphere elites would much rather have the developing countries clamoring to “get in” than ignoring such institutions or seeking to remove themselves. This may yet happen however if the US continues to insist on its 17 percent control of the IMF.

Conclusion: Times are changing substantially, as are the attitudes of developing countries. The control that Western elites expected to exercise over these institutions is coming increasingly into question. Ironically, if the West does give up control and allow these institutions to play their putative role, they will become fairly useless to their creators. They will also be seen, increasingly, as they ineffective entities they actually are. For this reason, the US is not likely to cede any part of its 17 percent. Lagarde may get her dream post, but she may soon come to regret it.

Source: http://www.thedailybell.com/2416/IMF-Memes-Roll-On.html


 According to Shane Ross all year the lady has been tormenting us. And all week we have been love bombing her.

Christine Lagarde, French Finance Minister and no friend of Ireland, has become the darling of our Cabinet.

The love-in began in Brussels on Monday when minister of state Lucinda Creighton launched the whirlwind courtship. “I would anticipate,” enthused the lively Lucinda, “that we would be very well disposed to her candidature.” Christine had been testing the waters for her campaign to succeed Dominique Strauss-Kahn as IMF boss.

Eyebrows were raised at Lucinda’s enthusiasm; but it was probably just Lucinda showing a little sisterly solidarity. Lining up behind Christine after all the grief she has given Ireland in recent months was hardly government policy.

Not until Tuesday, anyway. When Tanaiste and Foreign Affairs Minister Eamon Gilmore headed for the Elysee Palace. Eamon was greeted by no less a person than French foreign minister, Alain Juppe.

Eamon emerged from the meeting cooing like a love bird. Suddenly (according to the Tanaiste) France was “showing greater understanding of Ireland’s position on corporation tax and the interest on our EU/IMF bailout”. He even promised to support the lovely Christine if she just happened to put her name forward for the vacancy at the IMF. Lo and behold, within 24 hours her hat was in the ring.

A pity Eamon did not tell the Taoiseach that he had committed the Cabinet to Christine. A few hours later Enda Kenny told the Dail that the matter had not yet been decided at the top level.

But an agenda was emerging: Ireland was shaping up to back Christine, the nation’s tax tormentor.

On Wednesday, the courtship was consummated. Our own Finance Minister, Michael Noonan, was granted an audience in Paris with the French phenomenon. He was given a full 30 minutes. The meeting was flagged as yet another turning point in our bid for a lower interest rate on the bailout terms. It was widely assumed that the pair were cooking up a deal, that we were cannily trading support for Christine’s IMF ambitions in exchange for a less penal interest rate on our loans.

The cameras were called in to record the meeting. Michael was filmed by RTE greeting the elegant Christine with what Irish Times journalist Mary Minihan described as “an awkward continental kiss”.

Body language suggested Michael was not enjoying one of the few remaining perks of the Irish Finance Minister: you get to kiss the cheek of your French tax tormentor, deferentially of course.

The consummation proved a damp squib for Ireland. Michael’s spinners issued a po-faced press release, lacking in credibility. The statement explained that it was a “coincidence that she was a candidate for the IMF”. No progress was reported on the interest rate.

Michael enthused about Christine’s suitability for the IMF gig. His spinners insisted that the vacancy should not be decided on geographic region, but on quality. Christine was the quality candidate. Our Finance Minister, fresh from his date with Christine, was peddling the lady’s line that her European pedigree was irrelevant. Quite a contrast with the Taoiseach and Lucinda’s assertions that they preferred a European.

The routes might have been different, but all roads led to Christine. All the ministers were on message, even if the reasons given for their decision were contradictory.

The Government quartet probably got their wires crossed in their stampede to endorse Christine. Enda wanted her because she is a European. Michael wants her because she is a wonderwoman. His account of the meeting gushed on about her, dubbing Christine as an “excellent candidate, very capable, who not only fulfils the qualities that we would require in the job, but would be in a position that would assist us to meet the requirements of our programme”.

Michael even told the media that Lagarde has a “strong appreciation” of the Irish position on corporate tax.

She can stuff her appreciation. We needed a concession. None came.

Indeed she has never shown any sign of “appreciation” before she became interested in the IMF job. Until last week, she was the mouthpiece of Nicolas Sarkozy — the most implacable enemy of our corporate tax rate living on the planet.

Irish Government sources are spinning that the hawkish Christine is a secret sympathiser with our corporate tax regime. She is apparently a covert dove, wishing to aid our efforts to reduce our crippling interest rate on the EU/IMF loan. Once she is in New York in Dominique’s old job, she will be free of the shackles of Sarkozy and will emerge as a champion of our cause. So say the spinners.

There is not a shred of evidence on the public record to suggest that she will change her spots. The French president is hardly aware of it. Noble Nicolas was lobbying frantically for Christine at the G8 summit in Deauville on Thursday.

If Christine is really a friendly sleeper batting for Ireland, surely we should try to keep her locked in the Elysee Palace, constantly at Sarkozy’s side moderating his militant exploitation of our difficulties? Remember the words of Hilaire Belloc: “Always keep a hold of nurse for fear of finding something worse.”

If Christine escapes across the Atlantic, far away from the grip of Nicolas, perhaps he will install an even more hardline finance minister?

The charade of Ireland cheering for Christine hardly adds up. So why are we leading the charge?

Part of the reason could be that both Michael and his predecessor, Brian Lenihan, have both succumbed to the legendary charms of the French femme fatale: but even in the overwhelmingly male world of European finance ministers, human frailties cannot provide a full explanation.

The root cause is more alarming. We have pawned the nation’s future in the hands of Europe’s bully boys. At the beginning of the week, as Christine’s campaign gained momentum, we were terrified of being seen as reluctant supporters. We are now too deep in the European manure to pull out.

So we began to bandwagon. There was no point in alienating Christine if she was a certain winner.

What a craven piece of diplomacy. Yet it is part of a pattern. Both recent Irish governments have refused to stand up to ECB boss Jean-Claude Trichet, German Chancellor Angela Merkel, French President Sarkozy and their banker friends. We have bowed the knee to their diktats on sparing the bondholders; we have refused to default; we have begged them in vain to reduce their penal interest rates; we have become their puppets.

In return for our acquiescence we are the victims of German and French ingratitude, fending off demands that we face final ruin by giving up our last lifeline — our 12.5 per cent corporate tax. Charming Christine has been in the vanguard of our European “friends” determined to kick us with her stiletto when we were on the canvass.

Instead of accepting our humiliation we should have kept our own counsel. Michael should have indulged himself in his well-practised brooding mood. We could have seized the high ground, pointing out that there are several other good candidates; that Europe hardly speaks with one voice as the big powers decide the fate of the smaller ones; that the policies of Christine are not those of Ireland.

Even more credibly, we could have offered a highly convincing reason for a delay. On June 10 a French court will rule on whether to investigate fragrant Christine over a very serious €240m arbitration settlement with Bernard Tapie, a convicted ex-minister who backed Nicolas Sarkozy.

Our haste to endorse Madame Lagarde, despite this cloud hanging over her candidacy, underlines our desperation.

It never pays to love bomb your tormentor.

source :http://www.independent.ie/opinion/columnists/shane-ross/shane-ross-sarkys-lady-wows-noonan-2660646.html

The Queen of England is gone back to England so you can get up off your knees Lads and we don’t need a new Queen imposed on us by the IMF or the EU .

Strauss Test: Euro to miss DSK’s bailout backup

Well, we are hearing from the horse’s mouth ,I highlighted this prospect again last week as a possible outcome for Ireland to solve its Financial meltdown, caused by corrupt Politicians and bankers who successfully placed private debts on to the shoulders of the Irish taxpayers whilst the crooked politicians and Bankers sneak away with their lottery pensions and perks. I said last week Ireland may be forced to temporary leave the euro currency and revert back to the Irish Punt .Once they have done this the Irish Punt would be devalued by at least 35% and maybe up to 60% (worst case scenario)and I also warned that the government would also attempt to grab some or all of people’s savings by issuing a punt backed bond of some kind in lieu of funds that they will take from people’s private bank accounts .This could be done under the guise of national security and a promise to pay back interest in the future  .The attack on private pensions was just a trial run that will nett the Bankrupt Irish government a mere 2 billion at most but the savings pot is a massive 82 billion worth and as such worth a gamble by a desperate government. In the above video clip it would same I am not that far out with my possible scenarios that the Irish government will take or be forced to take. The question is why would we be forced to do this? Well at a stroke all of our valuable natural assets and minerals off our coasts  would be a lot cheaper to buy from us (Or I should say steal from us) .

Perfecting the IMF

International Monetary Fund's Managing Directo...

Image via Wikipedia

Monday, May 23, 2011 – by Staff Report

The IMF cannot afford to make a mistake with Strauss-Kahn’s successor The IMF will soon be confronted with the difficult decision of choosing a new head. If these were ordinary times, it might be of little moment. But these are not ordinary times. Whatever the result of the case against Dominique Strauss-Kahn, he was an impressive leader of the IMF and re-established its credibility, says Joseph Stiglitz. – UK Telegraph

Dominant Social Theme: Care must be taken to replace one irreplaceable man with another. (Or maybe a woman.)

Free-Market Analysis: We wrote recently of the sub-dominant social theme regarding Dominique Strauss-Kahn and the idea that members of the elite are irreplaceable. Like diamonds, each is Different but Infinitely Precious. Strauss-Kahn’s alleged rape, according to the mainstream media, could hardly have come at a worse time. The criticality of the IMF is more evident today than at any time in the past, we learn. True, world leaders like Strauss-Kahn are inevitably subject to the same “justice” as everyone else (is this really true, or just in America?), but if care is not taken, his “justice” might leave chaos in its wake and a developing whirlwind of economic disaster.

Of course, it is not just Strauss-Kahn that is irreplaceable. In fact, as we have explored, history itself is usually written from the vantage of irreplaceable men: From British kings to dashing generals such as Napoleon, history is shaped by the brutal will of courageous rulers. Washington, Lincoln, Roosevelt in America – all these potentates shaped the US according to their vision and the US itself would have been a much different country without them. From Charles De Gaulle to Winston Churchill to John Kennedy – each world “leader” is celebrated in the mainstream media for his irreplaceable qualities.

We can see this theme being carried forth in a column (excerpted above) by Joseph Stiglitz, who provides another twist by focusing not on the irreplaceable man himself but on the necessity to find a person of equal caliber to take his place. In fact, it is generally necessary to continually build up both the institutions of public service and the selflessness of its leaders. Without its apparent puppets, er … respected leaders, an endless array of useless laws would not be so easily passed, so-called civil society would not be “honored” and the Anglosphere elite would not be able to operate its mercantilist schemes with impunity.

We can see the principle of the irreplaceable man operating in British leaders such as Tony Blair, who was endlessly feted and celebrated in the 1990s as a kind of “genius.” His genius, it was said, had to do with making a modern melding of the caring nature of Labour with the harder-edged technocratic competence of modern authority. New Labour was supposed to sweep the world; in fact, it didn’t end well. (It never does.) Blair left Britain in an unbalanced state with finances in a mess, austerity in the offing and an unresolved, bloody war in Afghanistan. He split the country so badly that it is said a Labour government may not be elected for another generation.

Then there is George W. “you’re either with us or against us” Bush, another irreplaceable man. And yet, despite the invincible honor of this formerly impaired driver and self-described “war president,” the results of his regime were not universally positive. At home, his policies of compassionate conservatism impoverished Americans, destabilized the economy and may yet end the dollar-reserve system.

Abroad, in Iraq and Afghanistan, Bush pursued victory with implacable rigor. The only trouble with his victories was that they were incomplete when he rode off into the sunset. And without Bush’s personal presence, the victories that he claimed with such certainty seem to be unwinding. Cynics would maintain, in fact, that Bush’s victories were more ephemeral than substantial, more imaginary than real.

Bush did manage to poison two nations, Iraq and Afghanistan, with depleted uranium, giving rise to birth defects and cancers for generations to come. This and the generalized bankruptcy he inflicted on his own country may in fact constitute his lasting legacy. It could be said therefore that Bush generated significant accomplishments, even if they are not the kind that the elites will want to publicize.

Stiglitz is of course bothered by none of this. The famous progressive economist is still stuck on the idea that the right individual is needed for the right time – that history can be created, or at least rewritten if there is a well-meaning dynamo in charge. He is most concerned that the right individual be found to replace the previously irreplaceable Strauss-Kahn. “Europe faces a financial crisis,” he intones at the beginning of his screed, “and good leadership of the IMF will be essential to finding its way out.”

The right leader is of importance because the IMF itself is so important, and also because there is a battle going on for this institution’s soul. (Did you know the IMF had a soul?) It is being carried forth “between those who put the interests of the banks first and those who put the interests of the people first.”

Stiglitz is convinced that working for the IMF is actually a higher calling. “An effective and fair IMF is essential,” Stiglitz intones (one can almost hear the sermonizing), “an institution that looks not just after creditors in the lending countries but after the well-being of all.”

In fact, this is an interesting perspective. The IMF was founded in part by David Rockefeller (who helped found most everything at the war’s end) and is a member of a global-financial tag team. The World Bank is its other half. The World Bank’s job is to ensure that this despot and that dictator spends lavishly, borrows inordinately and is either assassinated or resigns, leaving aforesaid country in the lurch. Enter the IMF to complete the rape by demanding higher taxes, reduced public services and most important a sell-off of the country’s assets to Western conglomerates.

There is nothing in any of this that supports the “well being of all” – but Stiglitz has convinced himself that the better angels of the IMF are waiting to be produced by a leader of good faith. Here’s some more from the article:

Whatever the result of the case against Strauss-Kahn, this much is clear – he was an impressive leader of the IMF and he re-established the credibility of the institution. He breathed fresh air into the IMF as he re-examined old doctrines such as those concerning capital controls. He raised new issues as he emphasized the critical role of employment and inequality for stability. He reasserted the role of economic science, including Keynesian economics, over the mishmash of long-discredited Wall Street doctrines, which had been central to the IMF’s failures in East Asia, Latin America, and Russia.

He also listened to the increasingly vocal and informed voices of those in emerging markets. He supported the movement for reforms in the institution, including voting rights and governance. As the IMF transitions, it is important to maintain the reforms, and carry them forward. But the hard-fought gains of the institution could easily be lost. That’s why the choice of the head – and the process by which the choice is made – is so important. It should go without saying that this implies that the head should be chosen on the basis of merit in an open and transparent process, and indeed the G20 has agreed that the old boys’ system, in which Europe was entitled to head the IMF (with an American the second-in-command) has to go.

The understanding was that the next head would come from the emerging markets. To renege on that commitment would be a disaster for the IMF and the world. If the emerging world had no one to offer, that would be one thing. But there is an ample and impressive supply of qualified individuals. The required mix of skill and experience is, to be sure, unusual. The head must have a knowledge of economic science …The person must also have the ability to manage a complex international organization, have familiarity with the international players and the ability and credibility to deal with them forcefully.

Some menu! Stiglitz is entirely serious. This is “a true test of the IMF,” he writes, “especially because its governance has been widely viewed as flawed and opaque.” You think? The BRICS, Brazil, Russia, India and China, are still so suspicious of the IMF that they would rather go around it than work with it to create a new and more global currency. Stiglitz is aware of this, but the situation leaves him melancholy. “If they had confidence in the IMF, these countries could turn to that institution rather than self-insurance,” he writes. “This would be more globally efficient – but developing countries are reluctant to rely on the IMF.”

For Stiglitz, none of this is hypothetical. The ramifications of not selecting the right irreplaceable man (or woman) are grave indeed. All of us live together now … “IN AN AGE OF GLOBALIZATION.” And what does that mean? “INTERNATIONAL COOPERATION IS ESSENTIAL.”

One gets the feeling that people like Stiglitz wear these phrases on their foreheads to remind them (when they look in a mirror) that they must be used in every article and every speech. For Stiglitz, “there is a vital role for the IMF to play … It seems to have learned at least some of the lessons. The Institution seems well on its way to recovering a better reputation … the world needs a credible and effective International Monetary Fund.”

In fact, an effective IMF is just about the last thing the world needs. Someone should hand Stiglitz a copy of Human Action by Ludwig von Mises. (On the other hand, he might melt into a puddle screaming, “Oh, what a world!”) The reality is that INDIVIDUALS cause change within their own environments. Large public institutions such as the IMF operate by fiat – by law – and every law is a price fix. Thus, the IMF can do nothing but harm and throughout its long and illustrious career it is has seemingly harmed the citizens of most every country it has come into contact with.

Conclusion: And the IMF is doing it again: Europe is ablaze thanks to the IMF’s recipe of high taxes, reduced public services and “privatization” – which is merely a euphemism for selling prime assets to Anglo-American multinationals. Institutions like the IMF are an affliction that never diminishes, a plague that never ends. They are irreplaceable, just not in a good way.

Editor’s Note: Gold, silver coins legal currency in Utah! … The AP is reporting tht Utah legislators have “made gold as good as cash.” Assuming the report is accurate, Utah becomes the first state (as we have long predicted) but not the last to legalize gold and silver coins as currency. Next evolution: precious metals depositories. “Store your gold and silver coins in a vault, and receive a debit-like card to make purchases backed by your holdings.”

Source: http://www.thedailybell.com/2368/Perfecting-the-IMF.html


Just look at these codgers they should all be put out to pasture .These old men are full of themselves and frankly irrelevant in the greater scheme of things, I wonder what skeletons they have in their collective closets ?

Has there been a change of tone at the IMF?

by namawinelake 

There have been a number of statements from the IMF this week which suggest an apparent change in tone towards Ireland’s financial difficulties, now that former managing director and, by the bye, French presidential candidate, Dominique Strauss-Kahn (DSK) has departed the IMF to reconcile himself with the consequences of what took place in his New York hotel room only a week ago. DSK has been replaced on an interim basis by John Lipsky, the American economist with an earlier career with global investment banks. The IMF yesterday announced a recruitment process for DSK’s permanent replacement and say they hope the new appointee will be in place by the end of June 2011; according to the media, frontrunners include the current French finance minister, Christine Lagarde but other names in the frame include former UK prime minister, Gordon Brown as well as non-Europeans like India’s Montek Singh Ahluwalia. Tradition has been for a European to hold the top job at the IMF whilst an American holds top post at the World Bank but that seems as appropriate today as the ban on theUK monarch marrying a Catholic.
This week saw a raft of statements from the IMF that directly dealt with Irelandor which certainly pertain to our difficulties. On Tuesday, the IMF announced that it had agreed to release the next tranche of bailout funding which we had requested to be brought forward. That Tuesday statement by the IMF was quite upbeat about the efforts already made by our country to confront our difficulties. I was impressed by what appeared to me to be the IMF sticking its head above the parapets and suggesting that a medium-term ECB facility for our banks was necessary in order that our banks could return to the market for funding. This seems new and potentially creates a rift between the IMF and EU approach to Ireland. We still don’t know exactly what happened the week of the stress test and bank restructuring announcements at the end of March 2011 but it seems that we were desperately seeking a commitment from the ECB for a medium term facility then; remember the ECB is presently providing some €80bn of short-term liquidity funding to our domestic banks and is additionally authorising our national Central Bank of Ireland to provide €70bn of emergency liquidity assistance to our domestic banks. This short term financing is undermining our banking system and as Greece is finding out in quite graphic detail, being in hock to a lender that can pull the plug in seven days is reckless for a nation. But back in March 2011, the ECB unceremoniously dashed any hopes of a medium term facility with its statements in response to the 31st March restructuring announcements. Well, thank God at last that the IMF is making it plain that a medium-term facility is necessary.
But there’s more. Yesterday, the IMF released its first and second review staff report for Ireland and held a telephone press conference to respond to questions. And what a difference in tone! Back in March 2011 when the press asked the IMF about burning bondholders, the questioner was accused by the IMF of asking a “have you stopped beating your wife” loaded question and the question went unanswered. Yesterday the following exchange took place
Press: And you seem to be implying that you also understand or believe this and that without burden sharing from bondholders, be they bank bondholders or people involved in the bank bailout or whatever, without thatIreland’s prospects are very grim.
Ajai Chopra: Second, European partners need to make clear that for countries currently with programs there will be the right amount of financing on the right terms and for the right duration to foster success. In other words, the countries cannot do it alone and putting a disproportionate burden of the cost of adjustment on the country may not be economically or politically feasible. The resulting uncertainty affects not only these countries but through the high spreads and lack of market access it increases the threat of spillovers and creates downside risks to the broader euro area. Hence, these costs need to be shared including through additional financing if necessary.
I thought this was ground-breaking and signaled as clearly as possible that the IMF was now taking a position, regardless of whether or not it was at odds with the EU. And for good measure, the IMF was clear that “an increase in the corporate income tax is not a part of the EU/IMF supported program because we did not see such a tax increase as consistent with the overall goals of the program in restoring growth.”
The interim IMF boss was also speaking this week and his speech to the IMF Annual Meeting of the Bretton Woods Committee is also relevant to our circumstances when John Lipsky said “Turning toEurope, several peripheral euro area countries today remain in critical situations. And there is no easy solution. Without any doubt, the primary responsibility for restoring their economic health lies with the peripheral countries themselves. Difficult and demanding measures will be required in order to avoid an even more serious crisis and to restore economic health. At the same time, there are compelling reasons for their European neighbors and the global community—operating through the IMF—to support these countries’ reform efforts. The only viable option forEurope today is a solution that is comprehensive and consistent—and that is also cooperative and shared. Such a solution inevitably will include: (i) strengthening area-wide crisis management frameworks; (ii) accelerating financial sector repair; (iii) improving fiscal and macroeconomic coordination; and (iv) promoting high-quality growth.”
Sadly the IMF is the junior creditor in our bailout having a maximum commitment of €22.5bn compared to the maximum of €45bn being advanced by the EU. But securing IMF support for a degree of burden-sharing, for a medium term ECB facility and the maintenance of our corporation tax rate (and by implication its base) should bolster our efforts to emerge from the financial crisis and repay our sovereign debts and share in the repayment of our bank debts. It always struck me that our negotiating team last November didn’t recognize differences in the stances of the various parties and consequently didn’t even begin to exploit those differences. It was also striking that the IMF was hitherto at pains to avoid the perception of any rift or difference of opinion with the EU; the last week has reversed this perception and it is to be hoped that our current negotiators are capable of recognising the changes and developing a strategy which might exploit those differences and deliver a bailout which is sustainable.

source: http://wp.me/pNlCf-1qt


Market Brief 20th. May 2011 from Wealthbuilder.ie


Our friends over at Wealth builder have sent in their latest market outlook


The volatility which was predicted in the last quarterly brief continues apace with the markets continuing to climb a “wall of worry” as is typical.

 On the basis of Dow Theory, the bull run is still in place with the Dow Transports indicating that new highs are anticipated.

 Technology is going through a tricky phase. This market is patchy due to the fact that there are some specific stellar winners and many definite losers. The dynamics involved in tech product development, cloud computing, social networking fads and web marketing strategy are so rapid that “old” business models quickly become stressed and dated.  Momentum demands exceptional growth. So one must do ones research well before investing in this arena. Apple (APPL), Netflix (NFLX) and Baidu (BIDU) are all looking very strong with management well up on their game. As always we recommend that you invest only on supported pullbacks.

 The big story at the moment of course is the collapse of commodity prices. This is good for the overall market in that oil and food price appreciation will hopefully be tamed somewhat. This will have a bearing on core inflation and the future ability of the FED to keep interest rates low. As long as this supportive policy is held in place the market should maintain its bullish stance. (An indication of a change in sentiment in the market will be indicated when the 20 DMA on the Advance -Decline line in the broad market averages starts collapsing below the 50 DMA and fails to recover).

 Our favourite commodity instrument, the Silver Ultra ETF: AGQ, was up nearly 100% since March. Its break below the previous low of 318.44 on the 2nd. May indicated it was a sell.  Currently Silver is technically broken so it will be some time before we can be sure the worst is over. Thus I would recommend you save your profits and keep your powder dry until solid technical support is in evidence.

 The social situation in Europe continues to spiral downward.  Here in Ireland economic conditions continue to deteriorate with little help being granted by Germany or France to the Irish government’s attempts to lighten its EU/IMF bailout conditions.

Greece cannot meet its rescue terms and is being given “more time” which is a default in any normal mans language. Of course it cannot be “officially” named as such given that this would kick in the credit default swap insurance militia and nobody wants to give them a free lunch, if at all possible. A recent Vanity Fair article opened the lid on the rampant corruption in Athens and it is hard to see how Greece was ever allowed to join the Euro when it was common knowledge that its taxation system was such a complete corrupt mess.

 Most interestingly the Madrid “sit down movement” is bringing a new dynamic into the Euro equation. Spanish youth have finally had enough. With 40% of under 30’s unemployed they want a change. They are educated, eager and ambitious and they do not wish to continue to live, with no income or future, in the homes of their aging parents. Should this movement adversely affect an already fragile Spanish banking complex it may bring Madrid one step closer to needing IMF assistance. That could be a potential Euro endgame.

  The one winner in all of this is Germany. It continues to benefit from the Euro arrangement in that it has access to a vast European market for its industrial produce yet benefits from a fixed Euro currency. However Berlin refuses to accept any responsibility for the “lite touch regulation” it allowed to develop at the European Central Bank. It would appear Germans are happy with representation without taxation. Under these circumstances it is hard to see how the Euro will survive over the next decade. Yes, on paper, the cracks can be glossed over and the can kicked down the road but at the end of the day Europe is not only an economy it is a society. Currently its social contract based on dignity, freedom, equality, solidarity, citizen’s rights and justice is crumbling and it would appear that Brussels, as of yet, does not “get it”. The original vision of the great men who founded the E.E.C. is being destroyed by short-sighted bankers, technocrats and bureaucrats. These mandarins are playing with fire. Monnet, Schumann and Gaspari would be ashamed of them.

Dow Transports: Weekly

Apple: Weekly

 Netflix: Weekly

 Baidu: Weekly

AGQ: Daily

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