IMF Releases Steering Commttee Communique On Greece - Full Text

Tyler Durden's picture

Communique of the Twenty-Fourth Meeting of the IMFC: Collective Action for Global Recovery Chaired by Mr. Tharman Shanmugaratnam, Deputy Prime Minister of Singapore and Minister for Finance

The global economy has entered a dangerous phase, calling for exceptional vigilance, coordination and readiness to take bold action from members and the IMF alike. We are encouraged by the determination of our euro-area colleagues to do what is needed to resolve the euro-area crisis. We welcome that the IMF stands ready to strongly support this effort as part of its global role.

Today we agreed to act decisively to tackle the dangers confronting the global economy. These include sovereign debt risks, financial system fragility, weakening economic growth and high unemployment. Our circumstances vary, but our economies and financial systems are closely interlinked. We will therefore act collectively to restore confidence and financial stability, and rekindle global growth.

The advanced economies are at the core of an effective resolution of current global stresses. The strategy is to restore sustainable public finances while ensuring continued economic recovery. Taking into account different national circumstances, advanced economies will adopt policies to build confidence and support growth, and implement clear, credible and specific measures to achieve fiscal consolidation. Euro-area countries will do whatever is necessary to resolve the euro area sovereign debt crisis and ensure the financial stability of the euro area as a whole and its member states. This includes implementing the euro-area Leaders' decision of July 21 to increase the flexibility of the European Financial Stability Facility, maximizing its impact, and improve euro-area crisis management and governance. Advanced economies will ensure that banks have strong capital positions and access to adequate funding; maintain accommodative monetary policies as long as this is consistent with price stability, bearing in mind international spillovers; revive weak housing markets and repair household balance sheets; and undertake structural reforms to boost jobs and the medium-term growth potential of their economies.

Emerging market and developing economies, which have displayed remarkable stability and growth, are also key to an effective global response. The strategy is to adjust macro-economic policies, where needed, to rebuild policy buffers, contain overheating and enhance our resilience in the face of volatile capital flows. Surplus economies will continue to implement structural reforms to strengthen domestic demand, supported by continued efforts that achieve greater exchange rate flexibility, thereby contributing to global demand and the rebalancing of growth. Fostering inclusive growth and creating jobs are priorities for all of us.

We reaffirm the importance of the financial sector reform agenda and are committed to its full and timely implementation. We will continue our coordinated efforts to strengthen the regulation of systemically important financial institutions, establish mechanisms for orderly domestic and cross-border resolution of troubled financial institutions, and address risks posed by shadow banking.

We call on the Fund to play a key role in contributing to an orderly resolution of the current crisis and prevention of future crises. We welcome the Consolidated Multilateral Surveillance Report as an important tool to focus our discussions on key risks and policy issues. We welcome the directions set out in the Managing Director's Action Plan. In particular, we encourage the Fund to focus on the following priorities and report to the IMFC at our next meeting:

* A more integrated, evenhanded, and effective surveillance framework that better captures risks to economic and financial stability, drawing on the Fund's Triennial Surveillance Review and spillover reports;

* Early assessment of current financing tools and enhancements to the global financial safety net;

* Review of the adequacy of Fund resources;

* Ensuring adequate policy advice and financing to support low-income countries, including to address volatile food and fuel prices; and

* Further work on a comprehensive, flexible, and balanced approach for the management of capital flows, drawing on country experiences.

Governance reform is crucial to the legitimacy and the effectiveness of the IMF. We will intensify our efforts to meet the 2012 Annual Meetings target for the entry into force of the 2010 quota and governance reform. We call on the Fund to complete a comprehensive review of the quota formula by January 2013 and to report on progress at our next meeting. We reaffirm the commitment to complete the Fifteenth General Review of Quotas by January 2014. We look forward to further enhancing the role of the IMFC as a key forum for global economic and financial cooperation.

We thank Mr. Strauss-Kahn and Mr. Lipsky for their outstanding service at the helm of the Fund in difficult times. We warmly welcome Ms. Lagarde, Mr. Lipton, Ms. Shafik, and Mr. Zhu. Our next meeting will be held in Washington, D.C. on April 21, 2012. Attendance can be found at

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oogs66's picture

blah blah blah?

falak pema's picture

Oligarchism imposes collectivism through surrogate politicians on sheeple, to ensure its uber-alles stature. 

This is not a Bolshevik type collectivism. It is the other type. That of the Oligarchs. In medieval times it was called feudalism and the sheeple were called serfs. We are heading that way. So read about medieval times to refresh your minds about the future.

She has the legs of Margaret Bogenrief as well! ....I'm referring to my lead lady in novel!

Pizza spaghetti and mandolino's picture

This is neo-Trotskism, not feudalism, as it is very "liberal" on manners.

Also don't forget that taxation in the Middle Age was way lower than it is anywhere in our days. Typically it was about paying the tithe, i.e. 10 % income tax. As for the serfs in medieval times they had their own plot of land on which the landlord had no say. Obviously the regime of  modernity doesn't like such comparisons and has suppressed the true history.


jeff montanye's picture

while neo-trotsyist in habillement, feudalistic at the core, imo.  i don't think serfs had their own plot of land on which the landlord had no say.  

although not good, and certainly not as good as we expected, i really liked ike, it really is better than it was a thousand years ago.

madbomber's picture

what is the point in refreshing then? :)

falak pema's picture

nothing is permanent. The fight goes on. Swings and roundabouts. I'm on the side of those who fight for "bottom up" emancipation; not "top down" imperialism. Checks and balances as Montesquieu said; exposing the "two swords ponzi" as Voltaire showed the world : both of temporal and religious Oligarchies. 

smlbizman's picture

steering committee sponsered by rube goldberg....

I am more equal than others's picture

That great sucking sound coming from Europe is from the vacuum of leadership.  The void causing this vacuum is growing at an exponential rate.  What gets sucked in will be dangerous when it takes control.  If history repeats, or even rhymes, then it would suggest the next great leader will take these event and deceive most and bring destruction on a scale not known in humankind.  Think Hitler of the 20's.  Think Mao of the 40's.  Think Pol Pot of the 70's.  That is recent history.  Nature abhors a vacuum.  It will be filled.  It won't end well. Have a nice day.

narnia's picture

Nonsense.  We are witnessing a fracture of confidence in central planning, not a vacuum of leadership or a shift towards fascism.  The central wankers have no clothes, and the more they speak the more people start to acknowledge that fact.

The EU will fracture into the way it was before the EU.  The world will not end.  It will be better in the long run.

DosZap's picture

I am more equal...

What gets sucked in will be dangerous when it takes control.  If history repeats, or even rhymes, then it would suggest the next great leader will take these event and deceive most and bring destruction on a scale not known in humankind.  Think Hitler of the 20's.  Think Mao of the 40's.  Think Pol Pot of the 70's.  That is recent history. 



Arius's picture

Ms. Shafik and Mr. Zhu ????

yeap .... New World Orlder

AbelCatalyst's picture

Collectivism as in a thousand Bison running off a cliff together... Oh, and when they do all those USD swaps go up in smoke... Who's going to bail out the FED again??? Oh right, they can just print their way out.... Riiiiight!!!

english serf's picture

Its such shit. Only two options, keep printing or default. I'm fucking ignorant  and even i know that

toady's picture

What about keep printing AND default? The third, most likely, option.

Dugald's picture

Ah! been gazing at yers navel again Mucker?

Waterfallsparkles's picture

They are not Bailing Out Greece they are enriching the Bankers.  Nothing like a crisis to plow Money into the Bankers hands at the expense of the People.

TheGoodDoctor's picture

@english serf Please note that I gave you a positive vote but that it wasn't because you are ignorant! :p

Shvanztanz's picture


william shatner's picture


Is gold becoming the new currency? The Swiss stock exchange will soon offer clients the possibility of having post-trade profits paid out in gold.

Introducing the new service, post-trade specialists operating on the Swiss stock exchange Six Securities Services (a subsidiary of Six Group, owner of the Swiss stock exchange) said the new payment versus delivery service using gold was the first of its kind in the world and would operate “exactly like” a new currency.

agent default's picture

Oooops.  Let the bofire of the fiats begin for real.

augie's picture

all of this is blah blah blah. you have beginings of a fucking revolution brewing in lower manhattan AND ZEROHEDGE HAS NO COVERAGE! WTF TYLER!?

toady's picture

Like I said a few days ago about a similar video;

The cops will win every time until some of those cell phones and video cameras everybody is hold turn into hand guns.

zhandax's picture

Interesting; YouTube has frozen the 'views' counter at 304 even though the 'likes' counter went up by 10 while I watched it.

Cassandra Syndrome's picture

New World Order bitchez

Sudden Debt's picture

I was amazed by the amount of US debt that my country holds. If they sold it all we wouldn't have anymore debt!


Our rates are almost double of those of the US!

What I would like to know is why we don't sell it. Why do we keep the debt of our own?


 On the other hand, if Europe breaks up and the euro becomes worthless, and the dollar survives WE'RE RICH!

 But in the end, everybody will sell the US bonds to cover their own asses, and that's why the US will go down for sure. And nobody wants to be the last one to sell when there are no more buyers so once it starts, it will go down fast.


DoneThis2Long's picture

NWO .... just one more grandiose 'experiment' in a long and illustrious historical string of experimental bombs, by the power hungry egomaniacs to gain ever more control over the dwindling world assets and natural resources, in order of making a few more bucks, control a few more millions, yet forgetting that the more things change, the more they remain the same. NWO which will be as suckcessful as, Communism, Naziism, Socialism, UN, NATO, WTO, IMF, and the rest of equally worthless.

Humanoids are a self destructive, patheic species, bound for extinctions - soon - for we are among the dumbest species around - of course, contrary to our beliefs. How often we've made the same mistakes, yet, expected different results? The harder a handful of egotistical bastards try to impose their greedy views on the rest of us, the more explosive, and dangerous the end will be. When in the fuck will we learn? About the only talent we have is to destroy the natural order ... the environment. Unfortunately, we fuckup millions of years of natural evolutions as we pursue whatever the fuck we are pursuing, since nobody really knows. We are too fucking stupid to comprehend a simple basic concept: the Earth can only sustain only so many people, not several times that magic number.

[Shakes head in disgust].

Think for yourself's picture

I always see the same defeatist fallacies when someone whips out the malthusian view.

In a bid to make a seemingly cogent argument you acknowledge the elite's influence on globe-shaping entities, yet you assign all the blame to the people. You miss the obvious elephant in the room; that is, that for centuries the elites have fought against the sheeple's enlightenment as a devil in holy water, through deliberate suppressing of living standards (so they don't have time to figure it out while busy surviving), through mass control like religion, state education, top-down consumer media, mass drug administration and god knows what else.

The elite's greed for power has led them to shape power mechanisms as tools to maintain scarcity - the financial system, through the origin of money, being a prime example - and to fight off abundance by all means necessary, abundance being the enemy of profit. It seems obvious, by straightforward game theory analysis, that this was done to ensure that the sheeple would evolve within an environment where competition, not cooperation, is the most individually viable strategy, countering general welfare interests - yet it is somehow human nature or the peoples' fault for being a "self-destructive, pathetic species"...

Why this blame on human nature? Don't you grok that human beings are, fundamentally, self-optimizing complexity machines responding to their environment? Scramble willfully the inputs, both informational and environmental, and of course the machines will come up with fucked up optimization algorithms.

Are you just trying to make a verisimilar statement that would covertly skip this inconvenient fact? That would make you a shill. Otherwise, can you not face the fact that there is no such thing as "human nature" and that, as potentially self-directed, conscious beings, each and every one of us are responsible for what we make of ourselves? In that case that would make you a coward. Choose your poison.

One last point, less vital than the previous yet ultimately as fatal to your argument. The earth's carrying capacity is directly related to the individual level of consumption and overall efficiency of production. That is, just like 3 billion people couldn't have survived for a year in the 15th century without half of them starving to death - same for 9 billion in the early 20th - current technologies could probably very confortably accomodate 12 to 15 billion people if there was actual political will to make the jump to post-scarcity economics. But don't let that stop you in your aspiration to genocide a major part of the population. Let me guess, with 500 million people we'd be fine, right?

If you honestly think something like this then do yourself a favor - and to us too, incidentally - and kill yourself. That's the only ethical way to attain your goal, anyway, so set the example.

[nods head in support]

madbomber's picture

King James Bible
Be sober, be vigilant; because your adversary the devil, as a roaring lion, walketh about, seeking whom he may devour:

Piranhanoia's picture

We killed ourselves and decided slow was fine. We started in the 1940's, and have been working hard to insure everything will die with us. We started when we claimed killing people was saving people. The planet never did us any wrong, and we decided to kill every thing it made above ground.  Harry Bates and Edmund North told everyone almost as soon as it began.

Now we have a whole smart country that can't find anyone smart enough on the whole smart planet to stop an ongoing nuclear disaster in at least 3 reactors. This is the same country that is tool crazy and people have robotic sex. They know how to make tools.

This all happened when (at least) one currently problematic reactor was shut down cold when an earthquake hit. Most countries have no place to store the spent nuclear fuel or waste so they let it build up for dozens of years. The smartest idea to store crap that will never be safe was to put it in pools 3 stories high, in the same building as the working reactor. So cold shutdown appears to mean nothing more than, extreme danger level 1a.  Somehow the word "containment" became associated with "keep the damn barn door shut, your're letting all the animals out." Damn roof blows off,  ahh.  Radiation all over the neighborhood. The neighborhood is round and tiny and blue green and has a moon.

Our collective intelligence is on display and we don't give up easy. We find a way to turn some of the waste into projectiles. Pokes holes better that way. Pokes holes in all kinds of tissue better. Now we shoot it at little targets where it only poisons the local population if it misses them. Gives everyone an added incentive to leave the area, for good.

But don't worry,  fish is on the menu. Nightlights will become slowly, given one's perspective,  obsolete.

RSloane's picture

It is very much like an intricately painted, lavishly detailed crock that unfortunately has a hole in the bottom so when you fill it with w[h]ine it dribbles all over your feet.

DeadFred's picture

They make it sound so simple and straightforward. I guess things are going be be just fine, right?

citta vritti's picture

sounded to me more like one of those ancient ritualistic prayers, refitted into today's socio-politico-econ speak, where you recite what you want the world to be in the hope that somehow it will turn out to be that way once you've finished. Once the group doing the chanting have convinced themselves it will be so, their next job is to convince everyone else, by various soft or hard weapons, I suppose, as ever. For the one world order fans out there, the words that jumped out to me from the communique: global financial safety net. And, no surprise, no banks or their employees are to be harmed in the making of this film.

vjmali's picture

I agree, It sounds like a manifesto of a socialist organization, declaration of a resolution written by a junior bureaucrat ratified by senior ones enjoying taxfree salaries and perks. It is not even a plan but a deleration that there should be a plan.  And ofcourse a good ass licking thanks to others in the end.  We are fucked!!

vjmali's picture

Right,  Only for those with assured cushy taxfree job for life and all the perks and pension. IMF should be handed over to chinese who will have the Europeans in work without pay under a gun to appreciate the concept of work for money and forget one month vacation and retirement at 55 or 58.

CClarity's picture

Dear IMFC,

You might want to meet again, before April 21, 2012, if you really believe governance reform is critical and that the IMF has an important role to play in this unfolding crisis.  Either get with it, or get out of the way.  Time is awasting.  More time is not the solution to Greece, Europe and global debt saturation.

Sincerely, the rest of us.

vjmali's picture

Like we say here in the U.S never ever underestimate Europe's ability to disappoint the world.

Dugald's picture

People in Glass Houses should not throw stones!!!

Dick Darlington's picture

And all they have to offer is more debt. All this bs abt "bold action", "vigilance", "what ever necessary" etc are just hollow words to manage perception.

frugartarian's picture

so... all talk, no walk?

PulauHantu29's picture

Mission Impossible:

"Yet despite China's rising power, experts say its economy is still not big or strong enough to compensate for meltdowns elsewhere: Chinese investment and spending is only one-sixth that of the European Union and United States. "From a global perspective, China's domestic demand is still way too small to offset the impact of a recession" in Europe and the U.S., Deutsche Bank economist Ma Jun said in a report.

To make up for a 3 percentage point drop in growth in those economies, China would have to grow by 18 percent this year, he says. "This is mission impossible."

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