ekathimerini.com | IMF chief excludes payment delay for Greece

The media in Greece is beginning to play back that Greece’s creditors are ready to play hard-ball.

via ekathimerini.com | IMF chief excludes payment delay for Greece.

Ultimately, the current government in Greece cannot deliver on its manifesto. We are beginning to hear rumblings from the government of going back to the people for a new mandate. The current government looks doomed to failure.

Creditors will be watching very carefully, especially as there’s not enough money to meet IMF loan repayments due shortly plus meet the public sector wage bill.

Reneging on reforms is only going to hurt Greece. Greece can, of course, leave the Euro and the EU but that’s not really what the Greeks want?


Austerity: IMF 1, Osborne 0 | Editorial | Comment is free | The Guardian

English: George Osborne MP, pictured speaking ...

English: George Osborne MP, pictured speaking on the launch of the Conservative Party manifesto for the 2009 European Parliament elections, at Keele University. (805×1207 px, 283,711 bytes) (Photo credit: Wikipedia)

Olivier Blanchard, the International Monetary ...

Olivier Blanchard, the International Monetary Fund’s Economic Counsellor and Director of Research, during the World Economic Outlook (WEO) press conference, October 8, 2008 at the IMF Headquarters in Washington DC. (Photo credit: Wikipedia)

IMF Headquarters, Washington, DC.

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

This is a MUST READ editorial article from the Guardian newspaper. Check it out!

via Austerity: IMF 1, Osborne 0 | Editorial | Comment is free | The Guardian.

Let me cite a what I thought was critical in the article:

In particular, Fund economists believe the UK ought to borrow up to £10bn more this year, and plough that money into public works. Observers can argue the toss about whether such a policy is Ed Balls‘s plan B, but one thing is clear: it certainly isn’t the Osborne strategy….

As Bill Clinton’s former labour secretary Robert Reich remarked in London this week, up on Capitol Hill they now cite Britain’s experience over the past three years as the epitome of why austerity is a disaster.

Sadly, I fear that George Osborne will stubbornly stick to his original Plan A causing unnecessary economic hardship for millions.

I also note the mixed messages coming from the IMF which shows that Oliver Blanchard, a Keynesian, is still opposed by many austerians at the IMF. Once again, this is a signal that IMF Managing Director is not an economist, she is first and foremost a politician.

In spite of George Osborne and the Treasury’s hard-line, I would expect many Permanent Secretaries to making passionate pleas for what they believe should be their share of the extra ten billion pounds on infrastructure spending.

Any thoughts?

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