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Lagarde Lying?

Bruce Krasting's picture



The boss of the IMF, Christine Lagarde, has been talking the past few days. She said some things that I thought were interesting.


A few weeks ago, the ECB’s Mario Draghi laid out his plan to buy unlimited amounts of bonds of Spain and Italy in a desperate attempt to stabilize the European bond markets. In order to placate German criticism of the bailout, Draghi made it clear that there would be stiff “conditionality” that must be accepted by Spain and Italy before any bond buying is commenced. To give teeth to the promise of conditionality, Draghi was very specific that both Spain and Italy would have to accept an IMF involvement in the internal affairs of the countries involved. Mario said:


"The involvement of the IMF shall be sought also for the design of country-specific conditionality and the monitoring of such programs."


Lagarde has responded to Draghi’s proposal with her full support (Link):



According to Christine, the IMF is ready to roll up its sleeves and get down to work “fixing” Spain and Italy’s financial affairs:


"The IMF would be an active player in restoring the situation in the euro zone."


"We obviously have to do it under our normal framework, which implies conditionalities."


"The IMF is ready to get involved in designing and monitoring its implementation."


Think about the implications of this. The IMF is going to set up a “mission” in Rome and Madrid. There will be hundreds of IMF technocrats running around insisting that the countries bend over backward and accept the severe austerity measures that always come with an IMF bailout.


To the people of Spain I say:


Don’t let this woman in your country! She will make your life miserable. You will loose your financial destiny the day she arrives. Your unemployment rate will rise, your economy will suffer. Your political leaders will have given up the authority to rule on critical issues. You will become a ward of the IMF state.


Don’t believe me? Then please ask other Spanish speaking countries what they think of the IMF. Ask Mexico, Chile or Argentina if they hate the IMF. They do.


To the people of Italy I say:


I can’t believe you would allow this to happen! Your country is not bankrupt; you do not need to become a slave of the IMF. Your fellow countryman, Mario Draghi, has put you in a vice. Now you must come begging to him on your knees for help. While you are on your knees begging, you must accept that Christine Lagarde comes into your country and tells you what you can and can’t do.


I urge you to talk with the people of Brazil. They have been under the thumb of the IMF. They hated it. So will you.


Of course Ms. Lagarde is a political hack that plays to two audiences at once. She also had this to say about Italy and Spain:


IMF Managing Director Christine Lagarde said large, debt-strapped euro zone countries Spain and Italy had taken enough action to merit aid.

Already "taken enough action" you say, Ms. Lagarde? Are you saying that no more reforms are needed? That Italy and Spain don’t have to bite the bullet? Does this mean that the promise of “conditionality” has no substance? It sure sounds like it.


To the people of Germany I say:


The involvement of the IMF in the affairs of Spain and Italy is the only protection that you have. Lagarde has said that nothing more needs to be done to allow them to borrow freely, at cheap rates, and from your country’s Treasury vault!


If there is no conditionality, then you are about to write an enormous check. It will be measured in the Trillions of Euros once the floodgates are open. The wealth of your country is about to head south.


Do you really want this to happen?


Which is it Ms. Lagarde? You can’t have it both ways, and there is no compromise in the middle. Either there is meaningful conditionality, or there is not. Are you lying to the people in Spain and Italy? Or are you lying to the citizens of Germany? Is it possible you are lying to all of the countries involved?




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Tue, 09/11/2012 - 21:58 | 2783944 lindaamick
lindaamick's picture

The IMF destroys countries.  Look closely at Argentina.

The IMF is a loan shark mafia.  

Spain and Italy should default on the debt.  Tell the banksters to Jump.

There is NO future in cooperating with the IMF. 

Check the history of countries that take loans from them.

It is not pretty.

Wed, 09/12/2012 - 00:48 | 2784285 Assetman
Assetman's picture

Draghi has every intention of listing "conditionalities" for others to follow-- but when the rubber hits the road, the countries receiving aide wont be bound to those conditions.

If that were the case, Greece would have been booted out of the EU last year.  We've seen this tragi-comedy before.

Folks-- those cowardly leaders in the EU are scared sh!tless of ANY country in the group actually attempting sovereign default.  While you may see areas of "disagreement", everyone from Legarde, to Draghi, to Hollande to Merkel-- are all doing everything in their power to extend and pretend in an effort to keep their precious banking system solvent.

A country the size of Greece is coming nowhere close to meeting their austerity goals-- yet they have considerable leverage.  One can argue whether they're even trying.  But the 3rd round of financing from the ECB is virtually guaranteed.  Becuase if more debt isn't poured into the black hole, Greece defaults and it sets off a huge chain of events.  Half of Germany wants Grecce to pound sand and return to the worthless drachma-- but Merkel is scared witless of such a scenario.  Even Obama wants extend and pretend to keep election hopes alive.

If I were Rajoy or Monti, I would tell the ECB we will take that nice unlimited bailout today-- but will be eventually cutting all the strings attached sometime in the very near future.  We either get our nice series of bailouts-- or we start a massive wave of sovereign defaults that is not going to end in Italy or Spain.  It's going to end as a rotting dead carcass at the ECB and IMF.  The troika can do all the monitoring its wants-- it won't make a difference if the country is determined not to bite hard on the austerity bullet.  

And all the players major inside the EU, ECB, and IMF know this.  The rest is just theatrics.

Get ready German taxpayers-- your wealth is about to be transferred.


Tue, 09/11/2012 - 22:57 | 2784076 Eireann go Brach
Eireann go Brach's picture

Is she half black?

Tue, 09/11/2012 - 23:04 | 2784098 Ahmeexnal
Ahmeexnal's picture

Lagarde....rhymes with retard.

Tue, 09/11/2012 - 21:40 | 2783903 monad
monad's picture

The Bush family and their friends really do hate our freedom. 

Wed, 09/12/2012 - 09:39 | 2785337 monad
monad's picture

For the Down voting igoramouses

Executor of the American Reichstag event: W

Governor of the 2000 vote fraud state: Jeb Bush

9/11 Head of WTC Security: Marvin Bush

CEO of biggest 1991 bailed out money laundering/drug dealing S&L: Neil Bush

Head of CIA Bay of Pigs operation: George H Bush

Friends: Mao, Hinkleys, Quayle(Monsanto), Thomas(Monsanto), bin Ladens, Despot puppy Blair, Saddam Hussien, Manuel Noriega, the Clintons, Janet Reno and all surviving Nixon Nazis, Keating, etc

Tue, 09/11/2012 - 21:57 | 2783902 monad
monad's picture

bush's copy

Tue, 09/11/2012 - 21:27 | 2783871 tradewithdave
tradewithdave's picture

All men are mortal.

Jesus is a man.

Karl Popper was a man too.

Tue, 09/11/2012 - 18:34 | 2783425 Heroic Couplet
Heroic Couplet's picture

The IMF, Lagarde, Ben Bernanke do not hold any elected office.

Tue, 09/11/2012 - 18:26 | 2783400 Bennie Noakes
Bennie Noakes's picture

In IMF-speak "taken enough action to merit aid" means "dug yourselves into a deep, deep, hole through excessive spending and irresponsible economic policies."

"Conditionality" means that they will have to cross their hearts and promise to be better in the future.

I think the IMF gets unfairly blamed for a lot of suffering which is really the fault of the governments calling on them for aid. After all, why would the governments agree to all of the painful measures demanded by the IMF if they had any better alternatives available to them?

The IMF is more like a flock of vultures. Vultures usually don't kill things. But you certainly don't want to see them gathering around you.

Tue, 09/11/2012 - 17:44 | 2783271 Nassim
Nassim's picture

Why is it that Americans seem to be unable to differentiate between "LOSE" and "LOOSE"?

Immediately I see and article where the author does not know the difference, I drop it as it is clear that he does not have a clue.

Wed, 09/12/2012 - 00:05 | 2784059 Bernankenstein
Bernankenstein's picture




Normally the “Bernank” has better things to do at night, like minding my M’s, but….

When I type Nassim in Word, the first spell-check suggestion is Nazism. Not sure how meaningful that is, as I am not a deep thinker. However, I think the first suggestion should be “Nausea”, as that is how I generally feel after a night of reading ZH. Now, when I type in Lagarde, the first suggestion is “Laggard”. Hmmm….beyond my limited comprehension. Gotta get back to my job now....hey, where did all the ink go?




Tue, 09/11/2012 - 22:05 | 2783967 andrewp111
andrewp111's picture

Since both are real words, it is a typo that isn't caught by spellcheck.  That is the problem with reliance on spellcheck.

Tue, 09/11/2012 - 21:01 | 2783812 Roandavid
Roandavid's picture

It's a typo you ridiculous twit, get over it.

Tue, 09/11/2012 - 23:11 | 2784110 DeadFred
DeadFred's picture

Speling eletists as anoying as lyeing Politishins

Tue, 09/11/2012 - 20:10 | 2783671 IronShield
IronShield's picture

"Immediately I see and article where..."

I hate it when dumb foreigners can't differentiate between "AN" and "AND".  Here's your sword sir/madam, now please fall on it (repeatedly).

Tue, 09/11/2012 - 17:40 | 2783253 Element
Element's picture

Does she pay taxes?

Tue, 09/11/2012 - 17:10 | 2783179 lasvegaspersona
lasvegaspersona's picture

and why are Italy and Spain even thinking about asking for money from others...oh yeah, they are both socialist paradise in which each is given according to his political connections from those too stupid to hide what they have.

Eventually, hopefully we will have a system in which a saver can save in a medium that cannot be corrupted or stolen by those who would provide for us. With that heavy obligation lifted from the shoulders of the state, perhaps the state can return to doing what it does best which is.....remind me??/...oh yes, killing people who make the state look bad.

Tue, 09/11/2012 - 16:27 | 2783046 Chippewa Partners
Chippewa Partners's picture

Being a lawyer and a politician of course she does.

Tue, 09/11/2012 - 16:04 | 2782944 gregga777
gregga777's picture

The IMF always leaves massive wreckage in their wake after "helping" a country that has too much debt.

Tue, 09/11/2012 - 15:51 | 2782889 woolybear1
woolybear1's picture

I love Spain, I am here right now. If I had the power I would leave the euro immediately and default on the debt. To the creditors I would calmly say, you made an inappropriate wager, sorry.

Tue, 09/11/2012 - 15:41 | 2782853 Heyoka Bianco
Heyoka Bianco's picture

The bane of the internet: the hordes who confuse "loose" with "lose". They're neither homonyms nor synonyms, so how does this happen so often?

The IMF and the World Bank are the two things from Bretton Woods that survived whilst the only thing that might have helped got banjaxed by Nixon. Of course, the complaints about the IMF have shifted, from complaining about misspent money (when its "clients" were 3rd World shitchutes) to the Draconian policies it institutes (when the folks who used to pay in now need a pay out). Either way, you would look long and hopelessly to find an IMF success story.

Tue, 09/11/2012 - 16:11 | 2782981 Short_phlogiston
Short_phlogiston's picture

Thank you! "loose" and "lose" are worse then "affect" and "effect".

Tue, 09/11/2012 - 17:13 | 2783189 Cheesy Bastard
Cheesy Bastard's picture

Surely you meant "worse than", no?

Tue, 09/11/2012 - 20:14 | 2783683 IronShield
IronShield's picture

LOL  Same as Nassim above.  When are people going to focus on content and leave the grammar Nazi routine to the Profs at the Uni?

Tue, 09/11/2012 - 21:05 | 2783823 Roandavid
Roandavid's picture

High school.  

Tue, 09/11/2012 - 15:32 | 2782828 Fecklesslackey
Fecklesslackey's picture

Euro at 1.29 ... go figure!

Tue, 09/11/2012 - 15:29 | 2782815 Fecklesslackey
Fecklesslackey's picture

Central banker

1  [sen-truhl bang-ker]Show IPA noun, cock-sucker, MF-like






an inaccurate or false statement.


the charge or accusation of lyingHe flung the lie back at hisaccusers.

Tue, 09/11/2012 - 14:56 | 2782687 Father Lucifer
Father Lucifer's picture

Lagarde is the Devils daughter, I should know!

Tue, 09/11/2012 - 22:08 | 2783973 andrewp111
andrewp111's picture

Yes, she is MF Corzine's mother and his daughter at the same time!

Tue, 09/11/2012 - 14:54 | 2782685 Snakeeyes
Snakeeyes's picture

As an example, what do Lagarde/IMF plan to do about the collapsing Spanish housing market (and loan defaults)?

Tue, 09/11/2012 - 22:56 | 2784082 matrix2012
matrix2012's picture

Why the chart at the confoundedinterest 'Cumulative Change In Foodstamp and Disability Recipients vs NFP' put the total entitlement figure to *** JUST 21 millions *** ???

I think the EBT dependency is way higher, has a number of about 50 millions.

Tue, 09/11/2012 - 14:43 | 2782643 bobbydelgreco
bobbydelgreco's picture

don't worry italy won't take it in the end

Tue, 09/11/2012 - 15:56 | 2782602 obessoligarch
obessoligarch's picture

again she has gave lots of hope to the peoples of south europe....with a wholle new (old) direction like being sex tourism centers.

Tue, 09/11/2012 - 22:09 | 2783976 andrewp111
andrewp111's picture

Hey, sexual tourism is Greece's only way out. But they still have to leave the Euro first.

Tue, 09/11/2012 - 14:27 | 2782564 Zero Govt
Zero Govt's picture

someone tell me why we need central banks as back-stops and the IMF ?

isn't Govt supposed to be the wisest of all institutions, while problem-solving promising politcians the font of all human knowledge on election?? 

why all these back-stops for all the trainwrecks

Tue, 09/11/2012 - 14:29 | 2782577 Joe Davola
Joe Davola's picture

Same reason they need Blue Ribbon Panels to recommend any remotely controversial decisions.  Always pass the responsibility to an august panel of faceless toadies.

Tue, 09/11/2012 - 14:22 | 2782542 matrix2012
matrix2012's picture

I believe in Lagarde that her handbag is a genuine LV

what a cunning lady to jump ship before it went Titanic.

Wonder what are Sarko and his naughty wife doing nowadays?

hhhmmmmmm they may have their retirement package secured with the loot of the Gaddhafi's barbarous relic stockpile.

Tue, 09/11/2012 - 14:41 | 2782630 Enkidu
Enkidu's picture

Can't trust anyone with that deep a tan...

Tue, 09/11/2012 - 13:54 | 2782438 sangell
sangell's picture

Amongst all the new acronyms Draghi announced there was the middle way or "Enhanced Conditions Credit Line" which seems to have been made with a eye to helping 'program' countries ( read Ireland) make their way back from troika rule but may also serve to allow Italy to escape full conditionality and still get help from the ECB/ESM ( assuming the ESM ever gets going). Anyone know more about this ECCL program?

Tue, 09/11/2012 - 13:23 | 2782323 TrustWho
TrustWho's picture

She is not a liar. When someone looks you in the eyes and says I support "yes" and in the next breath says she supports "no", she is not a liar. She is so arrogant she can contradict herself in the same paragraph.

bipolar delusion, fregoli delusion, Ganser syndrome, Hallucinogen-related disorder, impulse control disorder, Kleptomania, Dyscalculia, Narcissistic personality disorder, Obsessive–compulsive disorder, Psychosis, Schizophrenia, Syndromic mental retardation

Somewhere in that list, you might describe her disease!

Tue, 09/11/2012 - 14:43 | 2782645 Enkidu
Enkidu's picture

Yond Cassius has a lean and hungry look,
He thinks too much; such men are dangerous.

Julius Caesar Act 1, scene 2, 190–195

Tue, 09/11/2012 - 13:53 | 2782436 Quinvarius
Quinvarius's picture

I am pretty sure she thinks she is a man too.

Tue, 09/11/2012 - 13:18 | 2782306 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

I am a lier.

I am lying to you now.

Am I telling you the truth or am I lying?

Tue, 09/11/2012 - 14:24 | 2782555 John_Coltrane
John_Coltrane's picture

I am the barber who shaves all men who do not shave themselves.  Do I shave myself?  If and only if I don't shave myself.

Ah, the contridiction of sets which contain themselves!

Tue, 09/11/2012 - 14:00 | 2782454 phalfa5
phalfa5's picture

yes ....  uh I mean no ...

Tue, 09/11/2012 - 13:10 | 2782284 taraxias
taraxias's picture

Is Lagarde lying?

Do chickens have lips?

Tue, 09/11/2012 - 16:57 | 2783146 TheFourthStooge-ing
TheFourthStooge-ing's picture

The central banking variety of chickens is indeed lipped.

Tue, 09/11/2012 - 13:03 | 2782259 Canadian Dirtlump
Canadian Dirtlump's picture

The next time this criminal George Hamilton Lookin cunt tells the truth to the press it will be the first. If you ever doubted transhumanism doubt no more, here you have the consciousness of a satanic witch deposited into a leather couch.

Tue, 09/11/2012 - 13:30 | 2782359 Joe Davola
Joe Davola's picture

I was thinking the Tanning Mom had found new work, but yeah - George Hamilton fits also.
