Leaked IMF convo about ominous ‘event’ in Greece, ultimatum to Germany triggers Athens’ backlash — RT News

IMF Headquarters, Washington, DC.

IMF Headquarters, Washington, DC. (Photo credit: Wikipedia)

RT reports that Greece is demanding an explanation from the IMF, which, according to leaked internal discussions, had been mulling a crisis “event” to force Athens into obedience, and threatening to leave the troika of creditors if Germany refused to provide debt relief to the country.

Source: Leaked IMF convo about ominous ‘event’ in Greece, ultimatum to Germany triggers Athens’ backlash — RT News

As I read this article, my mind reflected Greece’s history in recent years. Yes, Greece has made many mistakes but her citizens have suffered severely as a consequence. Angela Merkel deliberately chose to bring the IMF to the party to provide some economic backbone because she feared that the EU was too weak economically. Unfortunately, Merkel has rejected the conservative economic advice of the IMF and we now have the latest political scandal in this long-running saga.

Of course, the IMF has contributed to the financial crisis in Europe by demanding excessive austerity.

BUT in the wider context, another Greek crisis ahead of the UK’s Brexit referendum could send financial markets into a deep spin.

Thoughts?

This is how the ECB plans to lend at negative interest rates | World Economic Forum

English: Official logo of the World Economic F...

English: Official logo of the World Economic Forum. (Photo credit: Wikipedia)

In this WEF article, Silvia Merler reports on the ECB‘s Targeted Longer-term Refinancing Operation II (TLTRO II) which will provide loans to banks at extremely low interest rates.

Source: This is how the ECB plans to lend at negative interest rates | World Economic Forum

This is all deeply worrying, especially how little of the soft finance to Europe’s banks is finding its way to small businesses and households, the real engine of growth.

This blog has been arguing for some years that monetary expansion must go hand in hand with carefully targetted fiscal expansion.

Thoughts?