Skip to comments.EU: Bundesbank castigates IMF for saving Europe
Posted on 09/24/2012 11:35:12 PM PDT by bruinbirdman
Germany's central bank has launched a blistering attack on the International Monetary Fund, accusing officials of spraying around money like confetti and overstepping their legal mandate.
The IMF is evolving from a liquidity mechanism into a bank. This is neither in keeping with the legal and institutional role of the IMF or with its ability to handle risks, said the Bundesbank in its monthly report.
The bank said the Fund was right to help rescue Greece, Ireland and Portugal but said monitoring levels were slipping and there had been a watering down of standards. The scale of loans risks overwhelming the IMFs institutional structure.
The unprecedented attack came as the IMFs chief, Christine Lagarde, called for urgent measures across the world to head off a fresh global slump. While praising the latest emergency measures of central banks in the US, Europe and Japan, she said this was not enough to secure recovery.
The Europeans must activate their new machinery, while the US must prevent a dramatic tightening of fiscal policy later this year. Failure to act would effectively plunge the country off a 'fiscal cliff'", cutting US growth by up to 2pc. She said this would pose a serious threat for the global economy.
Ms Lagarde also said emerging economies need to bolster their defences against potential spill-overs, if necessary by injecting additional stimulus.
The Bundesbanks broadside against the Fund caused consternation in Washington, where Asian and Latin American members of the Board think the IMF has been doing Germanys work for it, shouldering too much of the risk trying to hold the eurozone together. There is irritation in IMF circles over the way the Fund has been dragged into badly-constructed rescue packages. The Fund has refused to lend any more money to Greece, saying the country cannot regain economic
(Excerpt) Read more at telegraph.co.uk ...
state your name
“I, STATE YOUR NAME ”
“ do hereby pledge allegiance to the prats ”
“ DO HEREBY PLEDGE ALLEGIANCE TO THE PRATS ”
“ with liberty, equality and fraternity for all.”
Like a headline from the Onion.