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The division might have been more on tactical grounds than on substance. Schäuble and the Spaniards wanted to smash Greece down immediately and publicly. The IMF doesn't care as long as the working class is crushed and the looting continues and mostly takes orders from the Americans anyway. The ECB council probably acts like an extension of the states so tended toward the immediate crushing side. No idea what Draghi thinks. Can he write assessments on his own or does he need approval? The Americans want this to go away before it gets in the way of their pissing match with the Russians.
The only one sorta reliable in the Greek corner seems to be Junker, presumably to spite Angela, but while both the Moscovici draft and the Commission being the first one out of the gate with their assessment helped immensely he has no money.

Looking at the people standing at the sidelines we have the European Social Democrats doing their usual thing, most leftists seeing Tony Blair behind every boulder (and who can blame them?), Putin trolling a bit as is his wont and the press foaming.

Most lynch mobs are somewhat disorganised.

by generic on Wed Feb 25th, 2015 at 07:06:50 PM EST
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generic:
Schäuble and the Spaniards wanted to smash Greece down immediately and publicly. The IMF doesn't care as long as the working class is crushed and the looting continues

Michael Hudson agrees:

Greek Finance Minister Varoufakis Wants Austerity ... for the Rich - Truthdig

Remember a few years ago when Europe said, Greece owes 50 billion euros in foreign debt? Well, it turned out that the central bank had given to the Greek parties a list called the Lagarde list (for Christine Lagarde, head of the IMF) of all of the tax dodgers, Greek tax dodgers who had Swiss bank accounts. Well, the Swiss bank accounts that the tax dodgers had ended up to about 50 billion euros. So Greece could pay off the debt that it's borrowed simply by moving against the tax dodgers.

But, of course, this would be at the expense of the Swiss banks and the other banks. So in effect the banks would be paying themselves. And they don't want to pay themselves. They want to squeeze it out of labor and let the tax dodgers and the Greek tycoons succeed in stealing the money from the government. So, in effect, the troika--not the troika, the finance ministers, really, are backing the tax dodgers and the crooks in Greece that SYRIZA is trying to move against, whereas the IMF is actually, for once, taking a softer position towards the whole thing. And even President Obama has chimed in by apparently calling German Prime Minister Merkel and saying, look, you can't just push austerity beyond the point, because you're going to push them out of the euro, and you'll push them out of the euro on SYRIZA's terms, where SYRIZA can then turn to the Greek population and say, wait a minute, we did what we promised here. We stopped the austerity. We didn't withdraw from the euro; we were driven out as part of the class war.

PERIES: Michael, earlier you were also making an analogy between what's going on in Greece and what happened to Cuba [crosstalk]

HUDSON: Cuba under Castro had an alternative social system. He wanted to spread the wealth around (it was a Marxist system) in his way. He wanted to get rid of really the crooks around Batista who were running the country, the rich who didn't pay taxes, and he wanted to have a social revolution there. So the American government said, wait a minute, if Cuba succeeds, then they're going to be a revolution all throughout Latin America. Latin Americans can realize, wait a minute, we can take over the American sugar companies there, we can take over the American banana companies there, we can make the rich pay the taxes and the corporations pay the taxes and the exporters pay the taxes, not simply the labor. We can unionize labor, we can educate it, and if Cuba can educate labor, that would be a disaster for the neoliberal plan, because if labor's educated and has a program, then it'll realize that there is an alternative to Thatcherism.



'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty
by melo (melometa4(at)gmail.com) on Wed Feb 25th, 2015 at 07:28:20 PM EST
[ Parent ]
...the central bank had given to the Greek parties a list called the Lagarde list (for Christine Lagarde, head of the IMF)...

...So, in effect, the troika--not the troika, the finance ministers, really, are backing the tax dodgers and the crooks in Greece that SYRIZA is trying to move against, whereas the IMF is actually, for once, taking a softer position towards the whole thing...

To clear up his misunderstanding: when the Lagarde list was born in 2010, Lagarde was still the finance minister of France, not yet the head of the IMF. So the list wasn't a sign of the IMF's softness at all; and, as told in the Die Zeit article discussed upthread, it was just the IMF's bureaucrats who advised the Greek government against bringing charges against the tax cheats.

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Thu Feb 26th, 2015 at 05:38:34 AM EST
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I found he myth of "good" IMF perplexing anyway. They also take much higher interest rates.
by IM on Thu Feb 26th, 2015 at 06:41:38 AM EST
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I think the reason is that its research division produces papers showing that the IMF's policies can not achieve its stated goals. That this had no influence on the policies is something that is easily missed.
by generic on Thu Feb 26th, 2015 at 06:45:51 AM EST
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Another reason is that the EU (ECB, Council, Commission) public discussion focused on debt service and budget cuts rather than the substance of the "reforms" enforced at gunpoint, and not just the IMF research division but the IMF top leadership was more flexible on that. Then again, Poul Thomsen and his fellow IMF bureaucrats would never have been able to exert the level of influence they have without the perpetuation of the depression by the austerians, so making the IMF worse than the others is wrong too.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Thu Feb 26th, 2015 at 07:03:52 AM EST
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Another reason is that the EU (ECB, Council, Commission) public discussion focused on debt service and budget cuts rather than the substance of the "reforms" enforced at gunpoint, and not just the IMF research division but the IMF top leadership was more flexible on that.

This may be the reason why IMF was left out. Finance ministers fear debt cuts because they don't want to sell them to voters while compromizing on "reforms" won't cost them anything. Not having IMF in let them choose whether to compromize on debt or on reforms.

by Jute on Thu Feb 26th, 2015 at 11:43:41 AM EST
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