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Scandal At The IMF: Senior Economist Resigns, Says "Ashamed To Have Had Any Association With Fund At All"
The rats everywhere are now jumping furiously off the titanic, but few had taken the time to write a letter explaining in detail just how cracked and broken the hull really was. This has now changed, with the departure of Peter Doyle, formerly a division chief in the IMF’s European Department responsible for non-crisis countries and currently an adviser to the Fund. Not content with quietly slinking off the scandal ridden organization which has become the butt of all jokes in the international community, where humor about Lagarde's Louis Vuitton panhandling bag is as pervasive as punchlines about just how incompetent the organization is at actually doing its duty, Doyle has penned the following scathing letter which tears down every myth about the IMF: from its impartiality, to the selection process of its head, to its effectiveness. The letter also contains the following gem: "After twenty years of service, I am ashamed to have had any association with the Fund at all." Pretty much says it all. This is a scandal in the making, and one which may shake to the core the credibility of the IMF in the context of international organization.
Full letter (pdf)
European Department
Washington DC
June 18, 2012
To Mr. Shaalan, Dean of the IMF Executive Board
Today, I addressed the Executive Board for the last time—because I am leaving the Fund.
Accordingly, I wanted first to formally express my deep appreciation to the Swedish, Israeli, and Danish authorities with whom I have worked recently, as well as all others with whom I have worked earlier, for their extraordinary generosity towards me personally.
But I also wanted to take this opportunity to explain my departure.
After twenty years of service, I am ashamed to have had any association with the Fund at all.
This is not solely because of the incompetence that was partly chronicled by the OIA report into the global crisis and the TSR report on surveillance ahead of the Euro Area crisis. Moreso, it is because the substantive difficulties in these crises, as with others, were identified well in advance but were suppressed here. Given long gestation periods and protracted international decision-making processes to head off both these global challenges, timely sustained warnings were of the essence. So the failure of the Fund to issue them is a failing of the first order, even if such warnings may not have been heeded. The consequences include suffering (and risk of worse to come) for many including Greece, that the second global reserve currency is on the brink, and that the Fund for the past two years has been playing catch-up and reactive roles in the last-ditch efforts to save it.
Further, the proximate factors which produced these failings of IMF surveillance—analytical risk aversion, bilateral priority, and European bias—are, if anything, becoming more deeply entrenched, notwithstanding initiatives which purport to address them. This fact is most clear in regard to appointments for Managing Director which, over the past decade, have all-too-evidently been disastrous. Even the current incumbent is tainted, as neither her gender, integrity, or élan can make up for the fundamental illegitimacy of the selection process. In a hierarchical place like this, the implications of those choices filter directly to others in senior management, and via the appointments, fixed term contracts, and succession planning of senior staff, they go on to infuse the organization as a whole, overwhelming everything else. A handicapped Fund, subject to those proximate roots of surveillance failure, is what the Executive Board prefers. Would that I had understood twenty years ago that this would be the choice.
There are good salty people here. But this one is moving on. You might want to take care not to lose the others.
cc. Ms. Nemat Shafik
Mr. Stanley Fischer
Mr. Stephan Ingves
Mr. Benny Andersen
Mr. Alex Gibbs
Mr. Eric Meyer
Mr. Amit Friedman
Mr. Martin Holmberg
Mr. Reza Moghadam
Mr. Mark Plant
Mr. Brad McDonald
»
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Watch out for the "evaporative cooling" effect of those who are left.
http://lesswrong.com/lw/lr/evaporative_cooling_of_group_beliefs/
Even as the rats flee the sinking ship, those that are left will become ever more fanatical, until and unless immediate action is taken to disrupt this process, starting with a wholesale replacement of the upper echleons of their staff. I won't hold my breath.
Thought provoking link :)
I don't think this guy left because of fundamental disagreements about how the global economy works, or what the IMF should be doing though. He seems to have been upset that they weren't doing what they should have been doing properly for political reasons.
So I'm not sure how the arguments in the link apply here...
I am of the opinion that Keynesianism is analogous to a cult, hence the connection.
re the link---just a new way of thinking about an age old system of consolidating power--
This is EXACTLY how we end up with retards in Congress and sociopaths as CEO's.
If I were him, I wouldn't:
(1) Jog in Rock Creek Park at night
(2) Go sailing in the Chesapeake Bay in February, and fall overboard after having a heavy anchor chain wrapped around him, and a shotgun shell bored into his skull
(3) Abandon his car on an access road to Dulles Airport after telling his wife that he is going to buy a carton of eggs and a bottle of orange juice, never to be seen again
Look up what happened to William Colby. He went for an evening canoe paddle near the Chesapeak.
The letter said: 'that the second global reserve currency is on the brink'.
Perhaps indicates the letter writer is less than switched on to the Euro's unique qualities.
Are you saying they are a buch of boobs?
Apparently strange boobs with Fukishima nipples.
navel oranges are old and boring and weren't selling well. These are the new GMO nipple oranges. I'd be a little afraid when fresh squeezed.
I originally did it during the DSK fiasco. But it has all kinds of other themes running in the background, particularly now that Lagarde is at the helm.
I wonder about this:
http://www.flickr.com/photos/49978430@N03/6918274779
with this or this inserted for the face:
http://uk.reuters.com/article/2012/07/03/uk-imf-ecb-lagarde-idUKBRE8620YZ20120703
http://www.belfasttelegraph.co.uk/news/world-news/cut-deficits-slowly-says-imf-chief-16155277.html
And the caption, Another IMF Head busted at the helm....
Be careful..you can poke an eye out with those things.
Maybe poke an Eye-M-F out? William would like that a lot, I think.
buh dump bump.. Good one.
Very good, I can do something with that.
Oh mister, mister....
Ms Legarde and that NJ tan mom certainly could use some Banzai make-over magic...aye?
they are both quite crispy.
Cheers.
WB7, I think you mean international mammary fund,
I'd like to make a withdrawal please.
We are all suckers but unfortunately only for punsihment so far.
It took me 20 years to realize I was in the Mob....
Shit must be getting real bad up in there.
Mobs are not supposed to wear uniforms, that could deceive any one. He thought he was part of the Enslaving Army.
Speaking of LaGarde:
Christine Lagarde and Nicolas Sarkozy embroiled in new corruption inquiryJuly 20, 2012
By the way, can I use you guys as a reference?
What's the over under on the bet that this does NOT appear anywhere in CNBC's broadcasting?
Anybody else find it ironic that an IMF big wig mentions Sweden and Israel in the same breath ? Where else have I heard Sweden and Israel entangled together in the past 72 hours ? hmmmm....
"The consequences include suffering (and risk of worse to come) for many including Greece, that the second global reserve currency is on the brink"
It it is know the dollar is collapsing or is going to collapse.
Going to?!?!?!?!? Track the purchasing power of the dollar in just about anything since the Fed took over issuance.
He is acutally taking a jobs with the FEDs. The free porn and prostitues are more appealing.
Sounds to me somebody else wants to get the fuck out of Dodge before the shit hits the fan. Probably trying to "get on the right side of things" in hopes that he won't be hanging from a lamp post in the future.
Hey Doc, I thought that also. How close to the brink are we?
You never can tell about these things, but I always felt mid August early September things would start falling apart.
Of 2008? Then yes, I agree.
Agreed..I'm refering to the next stage.
And who knows how many bankers have bailed since April. This guy says at least 450 in this April piece. Rats jumpin ship like no other time.
http://sirratatap.com/category/banking/450-bankers-leaving-the-scene/
Interesting times ahead bras, adjust accordingly.
Yes, but worked at the non-crisis countries desk, and probably had nothing to do all day long. Must have been a pretty boring and sleepy job. Maybe I should apply.
june 18?
Somebody's been sitting on that info for a month...
Give us time to get our affairs in order...
Had to give a month's notice?
Self Employment/ is very Gratifying!
maybe he was distraught over the death of Rodney King...
A shocking endorsement of an esteemed governmental international body (sarc).
When looking for the problem, look to who is providing the solution and you often find the problem.
The market is on cue for some major downside in the coming months. Like I said the other day, surprises to the downside. Also to much military buildup around Syria and Iran. Something is afoot. This is not a time to be long equities over the coming weeks and months.
that would be great if Ben said that about the fed.
Jim Grant beat them all to it...
I'm selling "cable" off the 200. MsCreant
You have looked @ the eur/gbp chart?
good. shame is the element that has been sorely lacking. one day when this collapse is over and we are all left looking at the sky, the birds and each other, maybe then will we truly see what is important in life....each other, the family , the elders and the children, maybe then, the father of the home will resume his place as leader and protector of family. (note what is on television nowadays, adult men being portrayed as idiots, many with feminized behaviors. this is propaganda to mold societys behavior. turn off the damn t.v.)
the last time they turned off the damn tv the population jumped sky high.
Obama will pay my gas & mortgage...
Loan sharks to bail out loan sharks.
I might try that line on my wife: "Yes, dear, after 20 years of fooling around with the secretaries at work, I have to admit - I'm ashamed!".
...that I didn't try iit earlier!
I might try that line on the Mafia: "Yes, Don Corleone, after twenty years of service to the Mafia, I am ashamed to have had any association with the Mafia at all."
"After twenty years of service, I am ashamed to have had any association with the Fund at all."
On a more important note, at 20 years, he's fully vested in his pension and collects his solid gold watch.
true
After 20 years of working at a death camp....
After 20 years of swindling muppets at Goldman...
After.....aww fuk it.....you made your money, now you gotta conscience?
I quit my job after only 7 months....
IMF perverts= U.N. assholes!
Ending the week on a high note !
I can't wait for that gap down in Asia Sunday.
Thanks for your reminder.
1 Privatization 'Briberization.'
2 IMF/World Bank capital market deregulation allows investment capital to flow in and out the "Hot Money" cycle.
3 Market-Based Pricing, a fancy term for raising prices on food, water and cooking gas
4 IMF and World Bank call their "poverty reduction strategy": Free Trade- "The IMF riot."
http://www.gregpalast.com/the-globalizer-who-came-in-from-the-cold/
I'd forgotten all about Stiglitz. I like Palast's line at the end.
"I took away from my talks with the professor that the solution to world poverty and crisis is simple: remove the bloodsuckers."
I like Schlitz and Pabst too but what does that have to do with the article?
The World Bank is just as bad. One world Socialist assholes.
the man is obviously a moron, how could it possibly take 20 years to figure it all out. I am sure he is taking a fat pension.
Too late to claim ignorance. I'm visualizing more along the lines of Daniel Plainview's simple statement of "I'm finished."
The IMF is far from incompetent. It's just that its real agenda, which it is pursuing skillfully, is far different than its publicly stated agenda. It wants chaos, fear, and anger to extend the control grid of TPTB. What is interesting about Doyle's resignation letter is that it demonstrates that even people at the upper middle levels don't know this.
Doyle was the classic "self-propelled tool." Pretend you're saving the world, while ignoring all of the destruction caused. Then again, he's an "economist," so it isn't like he's ever had a coherent (read: non-Keynesian) view of reality anyway.
As Bill Bonner states over and over, "people will believe anything they have to in order to be who they believe they are."
useful idiot; we've all been there!
Perhaps they need more cake.
Things are really coming unglued now, not only in the world of finance but in the world of war, too. When people in high places, like the IMF are jumping ship, then the people need to get last minute supplies and have all plans in place and ready to go. We can still hope for the best but definitely prepare for the worse.
The IMF, the bankers favorite weapon against nations the world over, sucks.
I think All these high ups at the IMF and other governments should be put on trial for Treason, they should be held to explain why their actions should not be considered treasonous against not just their country or continent but to humanity as a whole.
Who cares hordes of employees are waiting to join the IMF....
Money buys everything in this System and noone cares
"Scandal At The IMF: Senior Economist Resigns, Says "would have kept right on going for another twenty had everyone kept quiet"
POS. He only waited until now? POS. Double-POS.
Edited - wrong pix. Doyle is the bullethead on the left:
http://cdn.timesofisrael.com/uploads/2012/02/F120213UL01-635x357.jpg
http://www.timesofisrael.com/bank-of-israel-social-protests-helped-moderate-inflation-rate/
Sure doesn't seem to be showing much shame in Feb 2012.
POS.
the imf is a rockefeller axis of evil sock puppet, in collaboration with its other subsidiary, the world bank, to subjugate all developing nations into debt slavery so that the wealthy west can continue to live off the backs of their impoverished subjects.
fuck the imf.
We don't get the chance to hear this stuff if the elite don't have some significantly new plans in store for us. Be prepared for the final implementation of the NWO.
This guy may have some Greg Smith Syndrome (make a ton of money, leave with a conscience after being rich)....but not everyone at the IMF is a douchebag like Lagarde.
THere was the Indian economist (I forget named) who in 2006 was signalling warning signs about the sub prime crisis....and of course, our boy Larr ySummers, in front of the world's financial minds, told him to (in a PC way), shut the fuck up.
Yea, get back to me when some asshat does this at the U.N. Then I will care. You want to wipe it all out, shovel that turd into the East River and press the flush button.
Once again, that will only help the UN. They don't flush the shit, they remold it into something that doesn't look so shit-like.
they rehypothicate it ...
It must have been love, but its over now.
Missed out on a deserved promotion?
FRANCE IS IN DEFAULT
where ? in the British Open? Yes!
LaGarde -> Baker & McKenzie ___ * McKenzie just like the squid, but with unbounded tentacles... http://www.bakermckenzie.com/firmfacts/firmchronology/ http://www.bakermckenzie.com/firmfacts/firmhistory/
I didn't know there was so many legal experts in the whole wide world, all in one place too.
well, now you know.
Oh DSK we miss you so !
What is it with all these MFs in the news.... I still think it's there way of laughing at all of us
Sometimes the technocrats forget who their real masters are.
This guy spent 20 years at the IMF and only after someone new was appointed Managing Director does he decide to gripe.
I'm sure his criticism is valid, but only if you believe that the IMF's role has always been what they claim it is. If, however, the IMF is actually just a front for another business (which is what I think, personally), this guy was just waayyyy late to realize it.
His criticism is frustration from being a useful idiot all these years. But his letter states he finds the IMF Eurobiased in its current thinking. And he for one feels its wrecking the institution and blames it on the initial sinful mandate of always having a european to run the IMF, as compromise from BW days for having an american always to run the WB.
This he conveniently forgets as he does that the US is controlling voice in IMF. Timmy ran it from behind the curtain. And current Euro bias is with his consent as its to save the Euro banks from creating world contagion. This guy has blinkers on and in his frustration does not WANT to see the whole picture of US control as from inception of OVERALL instruments created at BW by FDR and his team.
Obviously the current meltdown is putting huge strains on the technicians in IMF who feel they are getting shafted deep and often to try and stave off the inevitable from occuring. Mission impossible leaves its legacy of ulcers.
I don't understand. Why is there a Senior Economist at the IMF anyway?
I mean, it's not like he's going to be able to help Tom Cruise any with killing off international spies or purloining some valuable microchip.
Micro Chip the banksters! Excellent post dynomutt
ask simon johnson of '13 bankers' fame @ baselinescenario
mit's, 'sloan school of management'
smart guy... but no Tyler!
Peter Doyle , and anyone named Peter Doyle , is an asshole
Methinks that is YOUR two middle names.
Peter Doyle go jump off a tall building pretty please. i am sure you will not.
instead go home to a lovely place 8-12 bedrooms seperate holiday homes.
nice wifey who even pretends to be a little boy as your analising her.
peter doyle sucking the blood the life force the money from the poorest countries in the world.
rape sex attacks galore plus cover up and payoff just a normal day at the office.
bestial crimes after 20 years you say you have had enough please kill yourself you fucking satanic masonic vampire
You guys are not reading his letter. He says that the IMF ihas become merely a tool of the powers-that-be, and, in effect, become a different organization than when he started in 1992.
Isn't that the theme of ZH, that financial regulators, bureaucracies and intermediaries, at one point having real economic value, have turned malignant? By not accepting that bad decisions create losses, and that those losses have to be reported and realized, bureaucracies and businesses have gone from wealth creation to wealth destruction, and have utterly lost their purpose.
And finally, having turned malignant, bureaucracies and businesses cannot be repair, but only blown up, and funds and energy once used to keep them up can then be released to create wealth with new organizations.
So an IMF insider says that IMF, too, has been taken by the body snatchers, and, in effect, cannot be reformed, only destroyed.
You Guys? What happened to GIRL-POWER?
*avatars may or may not reflect actual gender¹
Joe Mama? You are an icon of intellectual ineptness!
i permit you to bask in my prowess, lowly human.
You really need to exit the "BASEMENT".At least you read Z/H.
I have this dumb-founded question! I'll bet you outsmart your parents!
The QUESTION is "are you commited"?
...not yet, unless you count my current position at a pharmaceutical company.
jomama - save your soul. get out of pharma. What does pharma really do? Copy each other? Ignore cures, prefering treatments [See mental illness]?
All the real cures are life-style issues, but many potent compounds exist in the forest. When not lazy, Pharma looks in the forest, utilizing local knowledge. If they can isolate a molecule, the active agent, they patent and "own" it, no matter locals who have understood plants for millenium, infact showed the plants to pharma... they get their forest cut down. In a generation, the locals are looking for the pharma version.
The Pill was an interesting development, OK, acid, but other than that, what has pharma done? OK, some people get the right juice. Many, die every year from ingesting the wrong juice.
You can't reform something that was inherently corrupt to begin with.
Well said. And a glaring tell of the orchestrated plan was the forcing-out of Brooksley Born in mid-1990s from her U.S. regulatory post, when she identified the coming, global threat and an attempted to regulate the run-amok derivative markets.
What that plan is [not was] and its objectives are unknown, to me at least. Yet the the outlines of a plot to destabilize and create chaos to enable establishment of global control are apparent. Smacks of police-planet tyranny.
Appropos of this, Michael Hudson in his essay at ZH today, speaks of Neo-liberalism as weaponization. See Ilene's post:
http://www.zerohedge.com/contributed/2012-07-20/weaponization-economic-theory
Say it aint so Ma.....
TWENTY freekn Y-E-A-R-S... and this jerk Doyle still can't figure out the REAL "business plan" of his employer, the IMF.....
Have a feeling that "As Dumb As Doyle" is gonna go down in the post-NWO lexicon as a common term of contempt.
Yes indeed, having worked in government I can attest to the fact that employees are seen as "plug and play" devices.
Just a warm body to fill the slot.
Whatever your opinion of his motives, this kind of action should be encouraged, not criticized. Who knows how many senior IMF staff may be on the fence about resigning and telling all who, after reading the kind of shit that is getting smeared on this guy, will simply decide to hunker down. I would. Why bother?
Sometimes the pack attack mentality here at ZH is a little short-sighted IMO.
Why should we encourage rats to jump off of a sinking ship? It's something they already know how to do.
As to your question, why bother, well, it seems that this might be the easiest way to save one's bacon in the long run.
Banksters running to daylight.
I have the same feeling about my university looking at Ben & Mario...
It seems more likely that as an executive responsible for "non-crisis" countries, his portfolio was rapidly shrinking to zero.
Word diagram:
Incomeptence
Disastrous
Tainted
"After twenty years of service, I am ashamed to have had any association with the Fund at all."
Now, where's my 20 million severence pay package (Hush Money)?
I would be ashamed to work at Treasury after the GAO report today on TARP.
http://confoundedinterest.wordpress.com/2012/07/20/gao-treasury-needs-better-transparency-for-tarp-hardest-hit-funds-consumed-by-administrative-expenses-and-too-little-money-getting-to-borrowers/
The fuckers are starting to jump.
It took him 20 years to figure this out, must not be too bright but finally saw the light.
MF GLOBAL - rips-off individuals
IMF - rips-off countries
I-MF-GLOBAL - your worst nightmare. coming to a theater near you - real soon.....
Coming to a theater near you has a whole new meaning today...
I disagree, the Manchurian Candidate was a really old movie.
And on second though, Abraham Lincoln would probably disagree too.
'HONK' if you love scandals, Bitchez!
honk
if you had
goose for dinner
honk honk
Critisim of Doyle's kiss and tell departure after his long IMF tenure is misplaced. Hell his timing and mode of exit couldn't be more perfect as the goldman pricks flounder around struggling to hold the euro blivit they set fire to together.
Doyle's a ZH rockstar, a twenty year overnight success for his take no prisoners exit. God only knows who's next to exit the criminal enterprise singing a high note of malcontent.
Takes a brave soul to leave with the bridge burning behind you.
I can say! I'm a Boy. Where in the hell is John Corzine? I have an idea! Would anyone be interested in a pool of money?
Your procedes will be held in Trust. 3rd party intermediary. I want to find that ( Bung Hole)!
hotfx@ymail.com The money will be held in my Credit Union act. Mike is the branch President!
Yen, are you a bot? Or a lil' tipsy?
A little of both. Thank you, for taking the time to "reciprocate".
The problem causing this economist to finally quit is the corruption within the institution that prevents it from functioning as it should.
This happens because of power struggles within the institution where special interest groups fester and hire only those who are likely to be easily controlled.
This creates problems, all hiring will come from the inside of the groups, so the most tallented people are rarely chosen.
Soon you will see a community of low quality staff, where the non deserving keep out those who deserve to be hired everytime a position needs to be filled.
Everytime there is a crisis that needs to be adressed, the response depends on the ability of the groups to agree about how to handle the situation, in this case special interests of those who stand behind each group comes to play.
This is very much like politics, rotten, stupid and not likely to be successful.
Bingo! Happens every time until the organization implodes despite "housecleaning".
Christine La'Guarde ? IMF ?
Come on Ladies!
What drivel.
Luv ya (Buzz) always have!
Back atcha Yen! I almost lost my lunch when I read that letter. What a self-centered delusional wanker. A million bloggers were raising the alarm ten years ago! My translation: The omniscient imf has a lot of good people. If we had only sounded the alarm sooner, if only the bailouts had been bigger, if only I had been in charge with all my other esteemed competent colleagues none of this would have happened. Certain people have caused a stain upon the revered institution that is the imf so I am outta here! :P
Jimmy had a good idea...
https://www.youtube.com/watch?v=BbwFXngs9Lw
I recall getting an opus such as this when I was a banker in a large regional operation. An employee was bitching about the incompetence of his boss of ten years.
I wrote him back and suggested that he might be better off somewhere else if it took him ten years to fully comprehend his surroundings. I also wrote that it only took me two minutes to realize he was not someone I wished to have representing our organization to the public.
I am much more impressed by the guys that walk after a year, shaking their head and making sure none of the zombies were chasing him.
the "Fund" is always capitalized. Nice touch.
Credibility! Functioning/ Governments.
I'm lost in translation <>
Joan is no longer with us. But, identifying the structural framework will help you see the things many of us are warning about.. Please take the time to read both links. Your understanding of this situation will become clearer.
THE FOUR PILLARS OF THE UN AGENDA
GLOBAL STRAITJACKET
Change your browser to 32 bit browser viewing experience if you cannot view above links.
http://www.womensgroup.org/
My sole intent is to help you accelerate during the chaos phase. As expressed, they’re in a fight or flight mode. Hope this helps.
Nice reading Atomizer. I ALWAYS PAY ATTENTION!
Thank you. I do very much care about helping others. It’s hard for some people to understand that I can see future events based on history. Some days I just laugh & rant on other days. In the end, peeps will be faced with something they never imagined. Atomizer can only say, I tried by doing my part in issuing warning signals. On a positive note, society will become stronger. This is a very important step in intellectual growth by paving the way for future generations.
When did she die?
I am very saddened by this! What a bastion of courage she was. What happened to her?
Just like my mother, breast cancer.