Posts Tagged ‘Christine Lagarde’

Bad forecasts and grovelling apologies have become standard for the IMF

June 9, 2014

It’s not what you say but what you do that counts.

Economics is clearly not a science though many would like us to think it is. But with the IMF it is just apology followed by apology for wrong forecasts and bad advice. It smacks of forecasts made to suit a political agenda or just plain incompetence. Based on their track record nothing that is said by Christine Lagarde or the International Monetary Fund that she heads can be taken very seriously. She spends more time apologising than would seem to be healthy.

The latest apology by Christine Lagarde has been called “grovelling”:

‘Do I have to go on my knees?’: grovelling apology from IMF head for incorrect warnings on UK economy

Head of the International Monetary Fund, Christine Lagarde, accepts her organisation’s low growth forecasts for the UK economy were wrong.

Christine Lagarde has asked whether she needs to grovel on her knees before George Osborne over the IMF’s incorrect warnings on the UK economy, as she warned against raising taxes.

“Do I have to go on my knees?” Ms Lagarde, the head of the International Monetary Fund said, when asked whether she has apologised to George Osborne over the fund’s low growth forecasts and calls to adopt a ‘Plan B’ of less austerity – calls the body now accept it got wrong.

In a blow to Ed Miliband, who has called for higher rates of personal taxation and new levies on banks, Ms Lagarde said tax rises are “not recommendable”.

But this is not an isolated incident. Time after time the IMF announces that some country has got its economic policy wrong and warns of dire consequence if the country does not follow the advice of the IMF. Then – a few months later – they admit that the IMF got it wrong. And ususally by then they have caused much misery and wailing and gnashing of teeth.

12th January 2012: Does the EU-IMF Owe Ireland an Apology?

2nd June 2012: IMF apology to Greece after Lagarde remarks – YouTube

3rd January 2013: An amazing mea culpa from the IMF’s chief economist on austerity

6th June 2013: For hard-hit Greeks, IMF mea culpa comes too late

In any normal corporation Christine Lagarde and the IMF’s Chief Economist,  Olivier Blanchard would have been sacked a long time ago. And to think that some are suggesting Christine Lagarde for the top job in the EU only reduces my respect for the IMF and the EU.

 

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DSK case collapsing: Was this just French politics to kill his Presidential aspirations?

July 1, 2011
French Finance Minister Christine Lagarde (L) ...

French Finance Minister Christine Lagarde (L) talks with International Monetary Fund's Managing Director Dominique Strauss-Kahn (R):Image via Wikipedia

The New York Times broke this story and it makes me wonder if the anti- DSK faction in France were behind all of this just to get him out of the running for French President and – incidentally – to replace him with a Sarkozy-friendly Christine Lagarde at the IMF. With the internecine nature of French politics  reality is often much more convoluted than the most fanciful conspiracy theories. Perhaps Sarkozy  – who loves devious political machinations – was behind all of this?

The sexual assault case against Dominique Strauss-Kahn is on the verge of collapse as investigators have uncovered major holes in the credibility of the housekeeper who charged that he attacked her in his Manhattan hotel suite in May, according to two well-placed law enforcement officials. …. 

Since her initial allegation on May 14, the accuser has repeatedly lied, one of the law enforcement officials said. Senior prosecutors met with lawyers for Mr. Strauss-Kahn on Thursday and provided details about their findings, and the parties are discussing whether to dismiss the felony charges. Among the discoveries, one of the officials said, are issues involving the asylum application of the 32-year-old housekeeper, who is Guinean, and possible links to people involved in criminal activities, including drug dealing and money laundering. …. 

The revelations are a stunning change of fortune for Mr. Strauss-Kahn, 62, who was considered a strong contender for the French presidency before being accused of sexually assaulting the woman who went to clean his luxury suite at the Sofitel New York.

Prosecutors from the office of the Manhattan district attorney, Cyrus R. Vance Jr., who initially were emphatic about the strength of the case and the account of the victim, plan to tell the judge on Friday that they “have problems with the case” based on what their investigators have discovered, and will disclose more of their findings to the defense. The woman still maintains that she was attacked, the officials said.

“It is a mess, a mess on both sides,” one official said.

According to the two officials, the woman had a phone conversation with an incarcerated man within a day of her encounter with Mr. Strauss-Kahn in which she discussed the possible benefits of pursuing the charges against him. The conversation was recorded.

That man, the investigators learned, had been arrested on charges of possessing 400 pounds of marijuana. He is among a number of individuals who made multiple cash deposits, totaling around $100,000, into the woman’s bank account over the last two years. The deposits were made in Arizona, Georgia, New York and Pennsylvania.

The investigators also learned that she was paying hundreds of dollars every month in phone charges to five companies. The woman had insisted she had only one phone and said she knew nothing about the deposits except that they were made by a man she described as her fiancé and his friends.

In addition, one of the officials said, she told investigators that her application for asylum included mention of a previous rape, but there was no such account in the application. She also told them that she had been subjected to genital mutilation, but her account to the investigators differed from what was contained in the asylum application.


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