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January 13, 2011



Hi Michael,

Your question "What does the IMF/EU Really Want?" is indeed a very pertinent question. Furthermore it is a question, which from an economic standpoint, will give rise to more answers than you have dealt with here.

The IMF, throughout its history of bailouts across the globe, has without exception, as a prerequisite, demanded that recipient countries make substantial cuts to spending (austerity) and further more, insist on the privatisation of national resources and services. This has included such items as fresh water, with disastrous results i.e. Bolivia.

With this in mind and the fact that the public has not been given access to the details of the IMF deal (which incidentally have not yet been made public in Greece). Could you please expand on the answers to this most important of questions, as "full stop" has been proven historically to being insufficient.



Michael Taft

Maurice - fair point; and I was possibly being too cavalier on the issue you raised. I was merely attempting to show that a progressive government could challenge the current austerity programme based on the EU's/IMF's own projections. If, however, logic and rational analysis do not prevail, then we will either be faced with implementing a futile austerity programme. Or seeking a Plan B (or C or D) - one that, if not totally avoiding some recourse to the Stabilisation Fund, then one that seeks to minimise the bail-out in terms of amount and time. Any ideas?

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