Lagarde Lying?

Bruce Krasting's picture


The boss of the IMF, Christine Lagarde, has been talking the past few days. She said some things that I thought were interesting.


A few weeks ago, the ECB’s Mario Draghi laid out his plan to buy unlimited amounts of bonds of Spain and Italy in a desperate attempt to stabilize the European bond markets. In order to placate German criticism of the bailout, Draghi made it clear that there would be stiff “conditionality” that must be accepted by Spain and Italy before any bond buying is commenced. To give teeth to the promise of conditionality, Draghi was very specific that both Spain and Italy would have to accept an IMF involvement in the internal affairs of the countries involved. Mario said:


"The involvement of the IMF shall be sought also for the design of country-specific conditionality and the monitoring of such programs."


Lagarde has responded to Draghi’s proposal with her full support (Link):



According to Christine, the IMF is ready to roll up its sleeves and get down to work “fixing” Spain and Italy’s financial affairs:


"The IMF would be an active player in restoring the situation in the euro zone."


"We obviously have to do it under our normal framework, which implies conditionalities."


"The IMF is ready to get involved in designing and monitoring its implementation."


Think about the implications of this. The IMF is going to set up a “mission” in Rome and Madrid. There will be hundreds of IMF technocrats running around insisting that the countries bend over backward and accept the severe austerity measures that always come with an IMF bailout.


To the people of Spain I say:


Don’t let this woman in your country! She will make your life miserable. You will loose your financial destiny the day she arrives. Your unemployment rate will rise, your economy will suffer. Your political leaders will have given up the authority to rule on critical issues. You will become a ward of the IMF state.


Don’t believe me? Then please ask other Spanish speaking countries what they think of the IMF. Ask Mexico, Chile or Argentina if they hate the IMF. They do.


To the people of Italy I say:


I can’t believe you would allow this to happen! Your country is not bankrupt; you do not need to become a slave of the IMF. Your fellow countryman, Mario Draghi, has put you in a vice. Now you must come begging to him on your knees for help. While you are on your knees begging, you must accept that Christine Lagarde comes into your country and tells you what you can and can’t do.


I urge you to talk with the people of Brazil. They have been under the thumb of the IMF. They hated it. So will you.


Of course Ms. Lagarde is a political hack that plays to two audiences at once. She also had this to say about Italy and Spain:


IMF Managing Director Christine Lagarde said large, debt-strapped euro zone countries Spain and Italy had taken enough action to merit aid.

Already "taken enough action" you say, Ms. Lagarde? Are you saying that no more reforms are needed? That Italy and Spain don’t have to bite the bullet? Does this mean that the promise of “conditionality” has no substance? It sure sounds like it.


To the people of Germany I say:


The involvement of the IMF in the affairs of Spain and Italy is the only protection that you have. Lagarde has said that nothing more needs to be done to allow them to borrow freely, at cheap rates, and from your country’s Treasury vault!


If there is no conditionality, then you are about to write an enormous check. It will be measured in the Trillions of Euros once the floodgates are open. The wealth of your country is about to head south.


Do you really want this to happen?


Which is it Ms. Lagarde? You can’t have it both ways, and there is no compromise in the middle. Either there is meaningful conditionality, or there is not. Are you lying to the people in Spain and Italy? Or are you lying to the citizens of Germany? Is it possible you are lying to all of the countries involved?



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lindaamick's picture

The IMF destroys countries.  Look closely at Argentina.

The IMF is a loan shark mafia.  

Spain and Italy should default on the debt.  Tell the banksters to Jump.

There is NO future in cooperating with the IMF. 

Check the history of countries that take loans from them.

It is not pretty.

Assetman's picture

Draghi has every intention of listing "conditionalities" for others to follow-- but when the rubber hits the road, the countries receiving aide wont be bound to those conditions.

If that were the case, Greece would have been booted out of the EU last year.  We've seen this tragi-comedy before.

Folks-- those cowardly leaders in the EU are scared sh!tless of ANY country in the group actually attempting sovereign default.  While you may see areas of "disagreement", everyone from Legarde, to Draghi, to Hollande to Merkel-- are all doing everything in their power to extend and pretend in an effort to keep their precious banking system solvent.

A country the size of Greece is coming nowhere close to meeting their austerity goals-- yet they have considerable leverage.  One can argue whether they're even trying.  But the 3rd round of financing from the ECB is virtually guaranteed.  Becuase if more debt isn't poured into the black hole, Greece defaults and it sets off a huge chain of events.  Half of Germany wants Grecce to pound sand and return to the worthless drachma-- but Merkel is scared witless of such a scenario.  Even Obama wants extend and pretend to keep election hopes alive.

If I were Rajoy or Monti, I would tell the ECB we will take that nice unlimited bailout today-- but will be eventually cutting all the strings attached sometime in the very near future.  We either get our nice series of bailouts-- or we start a massive wave of sovereign defaults that is not going to end in Italy or Spain.  It's going to end as a rotting dead carcass at the ECB and IMF.  The troika can do all the monitoring its wants-- it won't make a difference if the country is determined not to bite hard on the austerity bullet.  

And all the players major inside the EU, ECB, and IMF know this.  The rest is just theatrics.

Get ready German taxpayers-- your wealth is about to be transferred.


Ahmeexnal's picture

Lagarde....rhymes with retard.

monad's picture

The Bush family and their friends really do hate our freedom. 

monad's picture

For the Down voting igoramouses

Executor of the American Reichstag event: W

Governor of the 2000 vote fraud state: Jeb Bush

9/11 Head of WTC Security: Marvin Bush

CEO of biggest 1991 bailed out money laundering/drug dealing S&L: Neil Bush

Head of CIA Bay of Pigs operation: George H Bush

Friends: Mao, Hinkleys, Quayle(Monsanto), Thomas(Monsanto), bin Ladens, Despot puppy Blair, Saddam Hussien, Manuel Noriega, the Clintons, Janet Reno and all surviving Nixon Nazis, Keating, etc

tradewithdave's picture

All men are mortal.

Jesus is a man.

Karl Popper was a man too.

Heroic Couplet's picture

The IMF, Lagarde, Ben Bernanke do not hold any elected office.

Bennie Noakes's picture

In IMF-speak "taken enough action to merit aid" means "dug yourselves into a deep, deep, hole through excessive spending and irresponsible economic policies."

"Conditionality" means that they will have to cross their hearts and promise to be better in the future.

I think the IMF gets unfairly blamed for a lot of suffering which is really the fault of the governments calling on them for aid. After all, why would the governments agree to all of the painful measures demanded by the IMF if they had any better alternatives available to them?

The IMF is more like a flock of vultures. Vultures usually don't kill things. But you certainly don't want to see them gathering around you.

Nassim's picture

Why is it that Americans seem to be unable to differentiate between "LOSE" and "LOOSE"?

Immediately I see and article where the author does not know the difference, I drop it as it is clear that he does not have a clue.

Bernankenstein's picture




Normally the “Bernank” has better things to do at night, like minding my M’s, but….

When I type Nassim in Word, the first spell-check suggestion is Nazism. Not sure how meaningful that is, as I am not a deep thinker. However, I think the first suggestion should be “Nausea”, as that is how I generally feel after a night of reading ZH. Now, when I type in Lagarde, the first suggestion is “Laggard”. Hmmm….beyond my limited comprehension. Gotta get back to my job now....hey, where did all the ink go?




andrewp111's picture

Since both are real words, it is a typo that isn't caught by spellcheck.  That is the problem with reliance on spellcheck.

Roandavid's picture

It's a typo you ridiculous twit, get over it.

DeadFred's picture

Speling eletists as anoying as lyeing Politishins

IronShield's picture

"Immediately I see and article where..."

I hate it when dumb foreigners can't differentiate between "AN" and "AND".  Here's your sword sir/madam, now please fall on it (repeatedly).

Element's picture

Does she pay taxes?

lasvegaspersona's picture

and why are Italy and Spain even thinking about asking for money from others...oh yeah, they are both socialist paradise in which each is given according to his political connections from those too stupid to hide what they have.

Eventually, hopefully we will have a system in which a saver can save in a medium that cannot be corrupted or stolen by those who would provide for us. With that heavy obligation lifted from the shoulders of the state, perhaps the state can return to doing what it does best which is.....remind me??/...oh yes, killing people who make the state look bad.

Chippewa Partners's picture

Being a lawyer and a politician of course she does.

gregga777's picture

The IMF always leaves massive wreckage in their wake after "helping" a country that has too much debt.

woolybear1's picture

I love Spain, I am here right now. If I had the power I would leave the euro immediately and default on the debt. To the creditors I would calmly say, you made an inappropriate wager, sorry.

Heyoka Bianco's picture

The bane of the internet: the hordes who confuse "loose" with "lose". They're neither homonyms nor synonyms, so how does this happen so often?

The IMF and the World Bank are the two things from Bretton Woods that survived whilst the only thing that might have helped got banjaxed by Nixon. Of course, the complaints about the IMF have shifted, from complaining about misspent money (when its "clients" were 3rd World shitchutes) to the Draconian policies it institutes (when the folks who used to pay in now need a pay out). Either way, you would look long and hopelessly to find an IMF success story.

Short_phlogiston's picture

Thank you! "loose" and "lose" are worse then "affect" and "effect".

Cheesy Bastard's picture

Surely you meant "worse than", no?

IronShield's picture

LOL  Same as Nassim above.  When are people going to focus on content and leave the grammar Nazi routine to the Profs at the Uni?

Fecklesslackey's picture

Euro at 1.29 ... go figure!

Fecklesslackey's picture

Central banker

1  [sen-truhl bang-ker]Show IPA noun, cock-sucker, MF-like


a false statement made with deliberate intent to deceive; an intentional untruth; a falsehood.


something intended or serving to convey a false impression;imposture: His flashy car was a lie that deceived no one.


an inaccurate or false statement.


the charge or accusation of lyingHe flung the lie back at hisaccusers.

Father Lucifer's picture

Lagarde is the Devils daughter, I should know!

andrewp111's picture

Yes, she is MF Corzine's mother and his daughter at the same time!

matrix2012's picture

Why the chart at the confoundedinterest 'Cumulative Change In Foodstamp and Disability Recipients vs NFP' put the total entitlement figure to *** JUST 21 millions *** ???

I think the EBT dependency is way higher, has a number of about 50 millions.

bobbydelgreco's picture

don't worry italy won't take it in the end

obessoligarch's picture

again she has gave lots of hope to the peoples of south europe....with a wholle new (old) direction like being sex tourism centers.

andrewp111's picture

Hey, sexual tourism is Greece's only way out. But they still have to leave the Euro first.

Zero Govt's picture

someone tell me why we need central banks as back-stops and the IMF ?

isn't Govt supposed to be the wisest of all institutions, while problem-solving promising politcians the font of all human knowledge on election?? 

why all these back-stops for all the trainwrecks

Joe Davola's picture

Same reason they need Blue Ribbon Panels to recommend any remotely controversial decisions.  Always pass the responsibility to an august panel of faceless toadies.

matrix2012's picture

I believe in Lagarde that her handbag is a genuine LV

what a cunning lady to jump ship before it went Titanic.

Wonder what are Sarko and his naughty wife doing nowadays?

hhhmmmmmm they may have their retirement package secured with the loot of the Gaddhafi's barbarous relic stockpile.

Enkidu's picture

Can't trust anyone with that deep a tan...

sangell's picture

Amongst all the new acronyms Draghi announced there was the middle way or "Enhanced Conditions Credit Line" which seems to have been made with a eye to helping 'program' countries ( read Ireland) make their way back from troika rule but may also serve to allow Italy to escape full conditionality and still get help from the ECB/ESM ( assuming the ESM ever gets going). Anyone know more about this ECCL program?

TrustWho's picture

She is not a liar. When someone looks you in the eyes and says I support "yes" and in the next breath says she supports "no", she is not a liar. She is so arrogant she can contradict herself in the same paragraph.

bipolar delusion, fregoli delusion, Ganser syndrome, Hallucinogen-related disorder, impulse control disorder, Kleptomania, Dyscalculia, Narcissistic personality disorder, Obsessive–compulsive disorder, Psychosis, Schizophrenia, Syndromic mental retardation

Somewhere in that list, you might describe her disease!

Enkidu's picture

Yond Cassius has a lean and hungry look,
He thinks too much; such men are dangerous.

Julius Caesar Act 1, scene 2, 190–195

Quinvarius's picture

I am pretty sure she thinks she is a man too.

Dollar Bill Hiccup's picture

I am a lier.

I am lying to you now.

Am I telling you the truth or am I lying?

John_Coltrane's picture

I am the barber who shaves all men who do not shave themselves.  Do I shave myself?  If and only if I don't shave myself.

Ah, the contridiction of sets which contain themselves!

taraxias's picture

Is Lagarde lying?

Do chickens have lips?

TheFourthStooge-ing's picture

The central banking variety of chickens is indeed lipped.

Canadian Dirtlump's picture

The next time this criminal George Hamilton Lookin cunt tells the truth to the press it will be the first. If you ever doubted transhumanism doubt no more, here you have the consciousness of a satanic witch deposited into a leather couch.

Joe Davola's picture

I was thinking the Tanning Mom had found new work, but yeah - George Hamilton fits also.