Re: Re: The idiocy of austerity measures. And happy new year!

#114409
Anonymous
Participant

@peterhun wrote:

2. IMF can not be trusted which have been proved time and time again. They have been one of the biggest culprit in where we are today. They are only there to secure the FEDesters and few other vested interests. Iceland did almost the opposite of their “demands” and they are way better off than for example Ireland.

Sorry, thats bullshit, a nice fantasy to fit your theories but completely untrue. Iceland did exactly what the IMF told them to do and the IMF approved of Iceland’s actions re: capital controls. The capital controls are a very drastic solution (and illegal) but Iceland had no choice. However, Iceland is ****ed. It cannot find a way to remove the capital controls and allow a free floating currency and the distortion is causing long term damage to the economy.

Ireland is starting to recover, its certainly got a beter future than Iceland as at least its got a convertible currency.

Blaming the IMF medicine as the cause of the disease is quackery.

LOL did I say they did everything right?

Iceland got trashed for what they did but you seem to have forgotten about that. What they did was not guarantee any of these bonds that these private banks issued. A figure that was around 11-15 times their countrys GDP. They let their banks fail and never injected any capital.

They have made misstakes after that but that’s not what this was about.

http://www.washingtonsblog.com/2012/08/top-economists-iceland-did-it-right-everyone-else-is-doing-it-wrong.html