"The IMF is the US and so ultimately, these new 'loans' to insolvent sovereigns, are being guaranteed by the US tax payer. We also know that if involved in the financings, the US IMF banks (JP Morgan and others) get preferred status in any sovereign bankruptcy. In light of what transpired during the MF Global bankruptcy, the 'preferred' status given to JP Morgan by the trustee has meant, that segregated client funds that were supposed to stay segregated, by law, have been taken by JP Morgan, an unsecured creditor. That doesn't bode very well for the US tax payers in the case of any future sovereign bankruptcies where investment banks like JP Morgan will have preferred status off the bat. In this situation, the US tax payers will have less 'protection' than the MF Global customers.
"Plus, if the IMF gets involved, countries would lose all of their sovereignty. The IMF would essentially run the country's finances and control all state assets, which basically results in the asset stripping of the said economies in order to continue to repay the new IMF loans that were necessary because the countries' GDP could not sustain the payments of the central banks's loans. Historically, borrowing from the IMF has always been devastating for countries, as after paying the IMF, there is no capital left for growth, all state assets fall into private, usually foreign hands and most wealth extracted from those assets is exported outside of the countries. It's a great deal for the IMF banks, as this means, the taking of real assets, like Italy's gold reserves for example, in exchange for paper, which in light of all the debt, QE and other inflationary policies, has questionable future value.
"Of course this is what will happen, as I am convinced that these people will not stop privatizing profits and socialising losses until they are forced to do so. They will squeeze every last drop from the tax payers of the world until everyone is paving their own roads, picking up their own mail and paying taxes on breathing. They will keep going until they cannot continue.”
-“Swani,” in a comment on Euro Zone: Another Crisis, Another Backdoor Taxpayer Bailout in today’s Zero Hedge.
They paid it forward
Goya and Moliere,
Brecht and Goethe,
Caravaggio and Voltaire,
And if we really care
About their findings,
If they’re aren’t just
Alchemy,
We won't begrudge the copper
Soul-extracted usury.
For they need inspiration too,
The boot of evil rules
To prophesy another way
And distinguish whose from whose.
This bounteous land is there for us
To starve and kill and lose
What other purpose could it serve?
For life is ever complete,
We chomp like horses at a bit
To charge our aching feet.
