IMF Admits It Is An Idiot And A Liar

Tyler Durden's picture

The topic of the IMF's idiocy - unquestioned here following years and years and years of absolutely horrific forecasts, not to mention charts like this one courtesy of the Troika, of whom the IMF is a proud member ...

... has been widely covered in the past. However, while in the past we have attributed to stupidity all the faults of the Angela Mozilla Christine Lagarde-headed organization, we never had the factual backing to also invoke malice, lies and manipulation. Now, we can.

According to a leaked "strictly confidential" document first obtained by the WSJ, "The International Monetary Fund is set to admit to major missteps over the past three years in its handling of the bailout of Greece, the first spark in a debt crisis that spread across Europe."

In an internal document marked "strictly confidential," the IMF said it badly underestimated the damage that its prescriptions of austerity would do to Greece's economy, which has been mired in recession for years.


But the fund also stressed that the response to the crisis, coordinated with the European Union, bought time to limit the fallout for the rest of the 17-nation euro area.


The IMF said that it bent its own rules to make Greece's burgeoning debt seem sustainable and that, in retrospect, the country failed on three of the four IMF criteria to qualify for assistance.


Over the last three years, a number of senior IMF figures, including the current managing director Christine Lagarde, have repeatedly said that the country's debt level was "sustainable"—likely to be repaid in full and on time. But the document described the uncertainties around the Greek rescue as "so significant that staff was unable to vouch that public debt was sustainable with a high probability."


The greater beneficiary of the 2010 bailout wasn't so much Greece as the wider euro-zone, the document suggested. It described the rescue as a "holding operation" that "gave the euro area time to build a firewall to protect other vulnerable members and averted potentially severe effects on the global economy."


An immediate restructuring would have been cheaper for European taxpayers, as private-sector creditors were repaid in full for two years before 2012 using the money borrowed by Athens. Greece's debt level thus remained undented, but it was now owed to the IMF and euro-zone taxpayers instead of banks and hedge funds.


The IMF also said its own analysis of the future development of debt was wrong "by a large margin." The fund's debt-sustainability analysis—a critical piece of forecasting—"included stress tests but these turned out to be mild compared with actual outcomes."


The fund didn't explain why it made the choices it did in detail, nor why it agreed to troika analyses that it now says were incorrect. But it said IMF staff "explicitly flagged" risks in the Greek program implementation.

In other words, as we claimed from the very beginning, Greece was nothing but a scapegoat to preserve the viability of the otherwise doomed Eurozone, with over three years of harsh terms imposed merely to keep the crisis contained and from spilling over to Europe proper, and instead of restructuring debt early on or allowing Greece exit from the EUR so the country could undergo an external Drachma-based rebalancing, the clueless organization just "made things up" as it went along all with one simple goal: shield Brussels from reality.

In order to achieve this, the IMF manipulated data, always coming up with "rosy" forecasts, even though all "reforms" in Greece failed and have continued to fail to this day.

Our take: this is merely the mea culpa the precedes yet another major negative inflection point for Europe, and whose job is to give the ECB carte blanche to engage full-blown, unsterilizied QE, whose consequences will be even more disastrous in the longer-term.

In short - Europe is finally returning to its rightful place that we all know and love: the brink.

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Pinto Currency's picture


That graph looks like the inverse of the major banks' gold price predictions over the last 13 years.

Nihilarian's picture

Looks like something Business Insider would put together, although this is a bit more accurate.

NotApplicable's picture

Lies? Hmmmm... must be getting serious.

knukles's picture

Admitted we were powerless over reality - that our criminal actions should be prosecuted.

James_Cole's picture

The fund didn't explain why it made the choices it did in detail, nor why it agreed to troika analyses that it now says were incorrect. But it said IMF staff "explicitly flagged" risks in the Greek program implementation.

Yeah, IMF hasn't explained a whole lot of it's consistent fuck-ups over the decades so doubtful they're going to start now.

Just another garbage US agency propping up shitty American businesses + allies. 

Precious's picture

Idiot, liar ... and can't keep a secret n'either.

DogOfSinope's picture

But, but... It looked somehow... isobaric.

CClarity's picture

IMF just the "first mea culpa".
BOJ, ECB, BOE, and the ultimately apologetic, hat in hands, sad face, FED will also acknowledge they didnt and can't fix this. Sorry for leading you on. Good luck with end of empire and all that. You're on your own.
And that's when blood on the streets gets going.

SAT 800's picture

"turned it over to a higher power".

machineh's picture

Looks more like a menorah, some would say.

Prolly just the Rothschilds' response to the more customary Masonic symbolism.

greyghost's picture

greece buys time for 17 other countries. reminds me of the quote from a federal reserve governor in the late fifties. something along these lines.....hold still little fish, we only intend to gut you.

DeadFred's picture

What does the misery of a few million debt slaves matter when the integrity of The Great Monetary Experiment is at stake?

disabledvet's picture

THANKS FOR TAKING ONE FOR TEAM EU GREECE. (not don't get any ideas Other Member States or we'll Cyprus you...

Colonel Klink's picture

Can't wait for someone to come up with a "monetary hot gate" where the world is able to defeat the "chosen" 300.


EDIT:  Oh wait, that's withdrawing your fiat from the banking system and buying silver/gold.

francis_sawyer's picture

Lying is the way to profits for the 2%...

doomandbloom's picture

and your point is...?

Shizzmoney's picture

Yeah, but it's a super duper RICH idiot and STFU!!!1111

ITrustMyGut's picture

IMF is just another in a long laundry list of tools.. to create and complete.. Monopolization. Monopilization of EVERYTHING

my persistent point is this: W Va Coal Mines.

they.. the PTB, are in fact, enslaving the world in an expanded version of the W Va coal mine exitence.

Competition is sin, bitchez!

Its_the_economy_stupid's picture

Telly is angry. Mother country has been screwed.

Downtoolong's picture

Back in 1982, when oil prices were dropping like a rock, I saw a similar chart from the corporate planning division of a major oil company. The chart showed repetetive forecasts of crude oil prices rising to $100/bl from an ever lower base. I think they finally trashed the chart in frustration when the spot price dipped below $10/bbl. But hey, in retrospect they were 30 years ahead of their time, for all the wrong reasons of course.

RaceToTheBottom's picture

Almost a "Don't hate me cause I am beautiful" defence

Cacete de Ouro's picture

At least DSK had his eye on the ball(s)..... or perhaps that was the problem all along..

101 years and counting's picture

"mired in recession".  sure.  and getting hit over the head with a hammer is just a little cut above the eye......


syntaxterror's picture

Pump and dump muddafvckas!

eaglerock's picture

I'm sure you could take the last several OMB forecasts for US growth and show the same thing.

NoTTD's picture

My take: This will be used as a pretext to pump yet more worthless cash down the black hole that is Greece, and southern Europe in general.

Bring the Gold's picture

And by Southern Europe you of course mean the EU banks, cause Greece et al are just conduits as this article explains straight from the horse's mouth.

Pimp Juice's picture

Lagarde is doing to Greece what DSK did to the chamber maid.

falak pema's picture

after having done it he paid her a million bucks in damages.

Do you think the IMF will pay the greeks (not their oligarchs) any compensation for having co-masterminded this rape of nation, presented as bad governance by those who were the puppets of EU/IMF over the ten year period when the shit was accumulated on public books by the squid's clients dressed up as people's reps.

The IMF is the public face of Pax Americana oligarchy mayhem.

Ghordius's picture

fine, agreed. but rape? Or "or allowing Greece exit from the EUR" allowing? There still is this little matter about popular will

ForWhomTheTollBuilds's picture

As much fun as the Tylers are having right now, the way I read that article is that the IMF intends to retract its support for "Austerity", which is to now take the blame for all economic problems everywhere.


Want people to live within their means?  Didn't you see what AUSTERITY did to Greece?  Look at the human suffering you unleashed on them, you Austrian Schooled whackjob!

Just as gold went suddenly in 1971 from being money for 5000 years to being known as an obviously bizzare anachronism championed by weirdo hoarding fetishists, the narrative is changing at a high level and an element of what was common sense is about to be turned on it's head.  Any sort of restraint on money printing, rule bending and bailing-in is about to be removed for good.


They may be idiots and liars but they are about to take a major leadership role in shaping things to come.



geotrader's picture



The FED is either leading this charge or not.  Don't be confused.

merizobeach's picture

The Bank of International Settlements is the puppet master of most players at the table, including our dearly hated Chairman.

geotrader's picture

In order for a 'strictly confidential' memo to be released, that would mean someone on the *inside* leaked it.  Didn't Julian Assange get in trouble for sharing leaked documents?  Insiders coming out is a good thing.  

IamtheREALmario's picture

Once again, wrong assumptions put out by propagandists. The IMF and international bankers care nothing about the economy, the countries or their people. They only care about creating an environment where they have ultimate power, regardless of anything else. Why else would they intentionally lend money to both sides in a conflcit so that they can fuel genocidal wars (such as those it has funded in Africa)? Whoever wins, the IMF has control over the winners through the debt created.

The only purpose for IMF forecasts, statements and admissions is to hide its real intent.

bdub2's picture

"In an internal document marked "strictly confidential," ....

of note, the doc's original title was also scrapped just prior to confidential release: "boy, this is de-escalating quickly" 

TicoTiger's picture

I stopped believing virtually all "governmental" charts and/or official explainations about the state of the world after 9/11 and also stopped trading stocks, bonds, etc. at that time. Like any other addict financial and status quo withdrawal was difficult and took several years to get control of my life once again, but it sure was worth it.

My secret was to return to basics: clean air, water and food, a nice small property, a bit of gold and silver, and most of all love for my family, while getting as far away from MSM and physcopaths as possible. It is surprising how wealthy in spirit one becomes, even as fiat "wealth" disappears. 

Shh, don't tell anyone.

assistedliving's picture

TT cudnt a said it better myself.  nice post but wrong blog.  any/everyone on this blog is in DEEP, caught looking at that light in the tunnel getting bigger. 

here ya go:

insanelysane's picture

God Bless You, Mr. Rosewater.

MaxThrust's picture



You could not have said it any better. I have followed the same course as you and your right. Wealth in oneself is something the Global Elites will have a had time foreclosing on.

On another point, The Bank of International Settlements is the over-arching controller of the banking system. Its the reason why Bitcoin will ultimately  fail. If a crypto-curency is to survive is must do so outside the influence of the BIS, and that's the real conundrum and why the elites continue as the gate keepers.

Until we can buy a crypto-currency outside the influence of the traditional banking system the concept is sure to fail.(The Banking sydicate's ban on payments to Wikileaks proved that all to well.) What the answer to this problem is I have no idea, but I trust some smart individuals will eventually come up with a solution.

ziggy59's picture

The Tao of The Lying Basturds

OpTwoMistic's picture

Waiting for the panic. Futures down 200

astoriajoe's picture

excel error no doubt. I'm sure it's all fixed now. Upward!

Olephant's picture

The chart shows very well what they would like to be the truth. Unfortunately it seems reality disagrees with them.