Here’s a phrase we are all going to hear a lot more of in the near future – “do more with less”. It most definitely will be heard by the average Europeans and Americans with salaries, benefits, pensions, tuitions, bills, etc. This is the ultimate cop out phrase for politcians and pundits who want to hide the fact that there would be plenty of available capital if it wasn’t all being mopped up by the institutions and people who need it the least and use it in the most destructive ways. It appeals to our sense of personal responsibility and virtue, but, in this current context, it is a big fat lie.
That’s what UK Chancellor George Osborne is going to be telling the British people while he makes good on his pledge to hand over more of their money to Christine Lagarde of the IMF, so the IMF can hand it over to crumbling Eurozone governments, so the Eurozone governments can hand it over to the private banks, so the private banks can hand it over the high-level corporate directors and executives who will not help a living soul with any of it. The title of the following article by Philip Aldrick from the Telegraph is apt, because the IMF ponzi is a process of wealth transfer only rivaled by that existing within the military-industrial complex.
The British and the Europeans in general will be required to do more with less, while the corporate elites living over there continue to do less with more. And after the elections are over in the U.S., we will be hearing the exact same lies from Geithner/Obama, or whoever is set to take their positions, that the British people are now hearing from Osborne (lies in bold):
Another £10bn of UK taxpayer money has been put at risk of a meltdown in the eurozone after George Osborne agreed to increase Britain’s contribution to the global bail-out fund.
The extra commitment will take Britain’s total contributions to the International Monetary Fund (IMF) to £40bn, putting every household on the line for £1,600.
The Chancellor struck the deal in Washington as part of a broad agreement between a number of non-eurozone countries to pump an extra $200bn into the IMF’s resources to help underpin the global recovery.
Japan has committed $60bn and Switzerland about $26bn. In total, the IMF has secured about $400bn in extra funding from members, half of which was pledged by the eurozone countries last December.
The US and Canada, though, have refused to take part.
Unveiling the agreement, the Chancellor said: “Because we’ve taken tough action to rescue our own economy we can be one of the countries that can support the IMF.
“It is a loan with interest, not a gift. Let me reiterate, it does not add to our deficit or national debt. It is not money that could otherwise be spent on public services, and no country has ever lost any money lending to the IMF.”
The commitment is sure to stir a backbench rebellion among Conservative MPs as well as opposition from Labour by leaving the UK more exposed than ever to another eurozone rescue.
The Chancellor has repeatedly stressed that the UK would not contribute directly to another eurozone rescue, but there are growing concerns the IMF will have to intervene to bail-out Spain within months.
If the crisis extends to Italy as well, the IMF would have to lend hundreds of billions more to the eurozone. Of the UK’s existing £30bn IMF exposure, £5.5bn has already been committed. Added to which, around £10bn more is exposed through the European Union rescue fund and a one-off bi-lateral loan to Ireland.
Anticipating objections, the Chancellor said the additional contribution was “broadly the same as” the extra commitments made by Labour at the height of the financial crisis in 2009.
Controversially, though, the Government will not have to put the extra funding to a Parliamentary vote because headroom was built into the last agreement. That 2009 deal, which was formally approved by MPs last year, was opposed by Labour – even though the deal was originally struck by Gordon Brown – and 32 backbench Conservative MPs.
Mr Osborne said the funds would only be released under strict IMF conditions. He added that the deal complied with his earlier requirements – that the eurozone had demonstrated they had taken measures to shore up their economy first, and that other leading nations were part of the deal.
About the eurozone, which recently raised the size of its own bail-out fund from Eu500bn to Eu800bn, he said: “They have done a lot in the past year. They have now increased the firewall. They have delivered, and the IMF is right therefore to step in with these additional contributions.”