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About LinkBacksIt would be a Really Bad Thing. Like most countries that have had IMF intervention, we would likely never recover to any acceptable degree and spend longer servicing IMF interest than working ourselves out of it.Originally Posted by Harmonica
It would be a Really Bad Thing. Like most countries that have had IMF intervention, we would likely never recover to any acceptable degree and spend longer servicing IMF interest than working ourselves out of it.
IMF is the worst ever as they are ruthless. They did huge damage to South America as their debt tripled after IMF stepped in. It should be used as a last resort but i hope not for the sake of Ireland.
I read what I thought was an excellent book on the world Economy. "Panic Rules" by Robin Hahnel. ( I wrote some of this on another thread). The book contains an interesting chapter on the History and Operation of the IMF. In particular, he talks about how the IMF removes much of the risk from international investments for those big enough to call it in.
The primary goal of the IMF is to look after large international investors and their investments. It is not a vehicle for helping countries recover or rebuilding societies. No one should be under the illusion that the IMF is going to do us a favour and rebuild our country for us.
Investors generally throw their money into countries that offer high-interest rates. The country however soon becomes embroyled in a financial crises. The IMF agrees to help and loans the country some money. This money is almost always used to pay back International Bondholders and Investors. The country is then obliged to introduce "Austerity" programs to repay the IMF. These might include :
- mass-privatisation
- severe cut-backs on public spending
- increased taxes
None of this is designed to help the country out of the hole. These measures are there to ensure that the IMF gets its money back. It turns the country into a debt repayment machine. Economic recovery, social justice are not on its list of things to do.
Hahnel discusses how the IMF is funded by taxpayers in member states. They therefore assume the risk of bailing out the near-bankrupt country but of course, the see none of the benefits for having ponied up for the loan.
Quite a nice way of taking the risk out of Investment I would have thought. It puts our NAMA horror show in proper perspective. There may be a train of thought that NAMA is an Irish solution, that this is wholey indigenous to our corrupt little isle. Not really. It seems allowing the taxpayer to rescue the bad invesments of Rich and Powerful institutions is a Worldwide practice.
Joseph Stiglitz has also written several books about the disasters that the IMF has wrought on economies. He used to work for them as an economist and has an insider view.
The IMF is US dominated and shares the neoliberal agenda of opening up economies with a tin opener so that the contents can be better consumed by its multinational corporations.
It has left poor countries having to charge for primary education and with privatised water (with laws in place to ban collection of water on roofs).
http://www.hartford-hwp.com/archives/25/076.html
An IMF Rescue would obliterate our credit rating, and drive the final stake through the heart of our already-withered financial reputation. It's not a question of leadership anymore - it's a question of keeping what little we do have left so that the next government (whomever it may be) can take over.
I'm blue in the face saying it at this stage who ever said they were a force for good?
Their only concern is getting repaid. They will offer funds only after they see the government concerned is making real effort to get their financial house in order so the country will have the capacity to repay them.
Usually this is a hack and slash of public spending. As much as it upsets the socialist sensibilities of some people, in the real fiscal world world the government concerned is so severely banjaxed anyway they would have little choice otherwise.
The problem with socialism is that eventually you run out of other people's money.
Anyone read John Perkins' Confessions of an Economic Hitman? I wouldn't trust the IMF with my telephone bill, and it would be cheaper to just let FF keep ruining the economy than to bring in outside destroyers.
"Authority that cannot be questioned is tyranny and I will not accept tyranny, any tyranny, even that of heaven."
- Terry Pratchett
Main reason why people want IMF is only because our politicians can make tough decision themselves
May be we should completely get rid of all present politicians and we don’t need IMF at all
I would not say I was looking forward to tough decisions but lets face it the government has made no big decision in the last 12 months. I've lost count of how much we are borrowing every year but it can't continue for much longer.
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