Comments on: Job #1 for the IMF: Stay the course and avoid lurches to austerity Sat, 21 Jun 2014 15:30:06 +0000 hourly 1 By: deLafayette Tue, 16 Oct 2012 11:50:15 +0000 Can’t imagine what LS witnessed at the IMF/WB summit in Tokyo, but Christine Largarde was not championing austerity.

From The News (16 Oct. 2012): “The International Monetary Fund — criticised in the past for its strict prescription of the bitter medicine of deficit cuts — used the week to articulate a moderated position emphasising growth.

That brought its Managing Director Christine Lagarde into conflict with champions of austerity, in the person of German Finance Minister Wolfgang Schaeuble, who insisted there was “no alternative” to budget-slashing.

The dispute was the centrepiece of events in Tokyo, as they jockeyed over how strict to be on countries with runaway deficits.Lagardecaused a stir on Thursday when she said she was happy for Greece — bleeding from the spending cuts demanded by international creditors — to have two more years to meet its deficit-reduction targets. The following day, Schaeuble said there was “no alternative” to slashing bloated national balance sheets…”

Of course, the Germans, who only see profligacy abroad rather than at home, will not be satisfied until all EU sovereign debts look like theirs at 81% of GDP. But France’s is at 86% and cutting a great deal out of its national budget.

What is Schaubel doing about Germany’s debt? Pointing the finger at others …

By: Butch_from_PA Mon, 15 Oct 2012 15:50:08 +0000 Austerity is stealing socialized welfare for risky financial institutions.

Countries will not fail if debt is allowed to go bankrupt. The soil and citizens are still there and will emerge smarter and stronger.

Austerity robs them of a generation to support a few greedy corporations that put too much risk in their business.

Austerity is legalized robbery.