Leaked: IMF plots to "cause a credit event" in Greece and "destabilize Europe"
Greece is demanding an explanation from the IMF today over a leaked transcript of a meeting that Wikileaks published. The implications are startling.
"The Greek Government asks the IMF for explanations whether pursuing the creation of bankruptcy conditions in Greece, just before the British referendum, is the Fund's official position," government spokeswoman Olga Gerovasili told state TV.
The memo appears to be a perfect example of what Naomi Klien refers to as Disaster Capitalism.
THOMSEN: That is one possibility. Another possibility is one that I thought would have happened already and I am surprised that it has not happened, is that, because of the refugee situation, they take a decision... that they want to come to a conclusion. Ok? And the Germans raise the issue of the management... and basically we at that time say "Look, you Mrs. Merkel you face a question, you have to think about what is more costly: to go ahead without the IMF, would the Bundestag say 'The IMF is not on board'? or to pick the debt relief that we think that Greece needs in order to keep us on board?" Right? That is really the issue.
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VELKOULESKOU: I agree that we need an event, but I don't know what that will be. But I think Dijsselbloem is trying not to generate an event, but to jump start this discussion somehow on debt, that essentially is about us being on board or not at the end of the day.
The targets of this man-made crisis is both Greece and Germany.
The whistleblowing organisation said the discussion showed that the IMF was planning to tell Germany it will abandon the troika (composed of the IMF, the European commission and the European Central Bank) if the IMF and the commission fail to reach an agreement on Greek debt relief.
The IMF officials say that a threat of an imminent financial catastrophe was needed to force other players into accepting its measures such as cutting Greek pensions and working conditions, but that the UK referendum on 23 June will paralyse EU decision-making at a critical moment, according to the records.
Besides the obvious immorality of this plan, there is also the fact that it could unpredictable side effects. As Bloomberg puts it, "would risk widening the destabilization of the EU."
In case what is happening is still not clear enough, Paul Mason breaks it down in simple terms.
So let me decode. An “event” is a financial crisis bringing Greece close to default. Just like last year, when the banks closed, millions of people faced economic and psychological catastrophe.
Only this time, the IMF wants to inflict that catastrophe on a nation holding tens of thousands of refugees and tasked with one of the most complex and legally dubious international border policing missions in modern history.
It is the whole of Europe, in other words, that the IMF is conspiring to hit with the shock doctrine.
It’s clear from the transcript that the IMF has become a playground for neoliberal fantasists.
To fantasise about inflicting yet another near bankruptcy on a teetering democracy reveals levels of insouciance about the welfare of human beings and the sovereignty of states incompatible with a democratic organisation.
It proves, yet again, that the core of the economic doctrine that guides the global elite is the determination not to “give a shit” about real people, but to impose the doctrine even at the cost of state failure.
In a related note, you might have noticed the IMF refer to "the refugee situation" which Mason says is "the most complex and legally dubious international border policing missions".
You see, while you were focusing on the American elections, Europe decided to do something about the refugee crisis.
First they closed the northern border of Greece.
Now they are prepared to ship the war refugees back to Turkey.
But they will still be safe in Turkey, right? Well, maybe not.
Turkey has illegally forced thousands of refugees to return to Syria, a report by Amnesty International says.
The group says about 100 Syrians have been sent back to their war-torn country every day since mid-January in breach of international law...
Under the "non-refoulement" principle of international humanitarian law, a state is prohibited from deporting individuals to a war zone.
Amnesty said one case involved three young children forced back into Syria without their parents, while another saw the forced return of an eight-months' pregnant woman.
Forcing pregnant women and children, without their parents, into a war zone.