HJ: It’s anybody’s guess what the IMF’s next move will be in regards to the multiple failing European economies. However, one thing is certain– collapse is coming to make way for a new, more equitable system. The question of exactly how that will happen is up for debate. Nonetheless, if the IMF holds true to its promise of no more aid for Greece, we can be sure that it will speed the entire process up. - Truth
No More Mr. Nice Guy As IMF Set To Kick Out Greece
It appears that following the resignation letter fiasco
from Friday, the venerable IMF is trying to regain some level of credibility in the world. In a note obtained by SPIEGEL
, senior IMF officials patience has clearly come to an end and has decided that, with Greece likely to go bust by September, it is no longer willing to provide additional Greek aid
(we assume in light of the push-backs on the promised cuts that the aid was based upon). Pointing to this now being a euro-zone problem, their cessation of Greek aid is even more critical since both Holland and Finland pledged support because the IMF was involved. August 20th marks an important short-term hurdle as Greece is required to pay back EUR3.8bn to the ECB – and with collateral being withdrawn, we wonder how long before the ECB pulls the plug entirely – even on Greek T-Bills. Whether this is sabre-rattling before the delayed TROIKA visit or the IMF (and the rest of the TROIKA) indeed deciding enough is enough and realizing finally that more debt
(or even maturity extensions) does not solve the problem of too much debt
- only default will do that!