NO ADVERTISING, GOVERNMENT OR CORPORATE FUNDING
DONATE TODAY


  August 7, 2016

Is the IMF's Neoliberal Base Unraveling?


Former financial regulator Bill Black discusses the significance of the criminal charges faced by IMF head Christine Lagarde and its economists preaching stimulus over austerity
Members don't see ads. If you are a member, and you're seeing this appeal, click here
   


audio

Share to Facebook Share to Twitter



I support The Real News Network because it cured my vertigo from all the spinning by Fox and MSNBC. - David Pear
Log in and tell us why you support TRNN


biography

William K. Black, author of THE BEST WAY TO ROB A BANK IS TO OWN ONE, teaches economics and law at the University of Missouri Kansas City (UMKC). He was the Executive Director of the Institute for Fraud Prevention from 2005-2007. Black was a central figure in exposing Congressional corruption during the Savings and Loan Crisis.


transcript

Is the IMF's Neoliberal Base Unraveling?JESSICA DESVARIEUX, TRNN: Welcome to the Real News Network. I’m Jessica Desvarieux in Washington. And welcome to this edition of the Bill Black Report.

Now joining us is Bill Black. Bill is an associate professor of economics and law at the University of Missouri, Kansas City. He’s also a white collar criminologist and former financial regulator and author of the book, the Best Way to Rob a Bank is to Own One. And of course he’s a regular contributor to the Real News.

Thanks for joining us, Bill.

BILL BLACK: Thank you.

DESVARIEUX: So Bill, lot of news coming out of the IMF this week. What have you been tracking exactly?

BLACK: Okay, so here’s the 30 second background. IMF stands for International Monetary Fund. It’s an international group that is supposed to assist countries that are suffering an acute financial crisis as opposed to the World Bank which is supposed to help folk more generally in development. And by tradition, the World Bank is run by an American and the IMF is run by a European. In this case by a series of French Politicians, currently Madame Lagarde and it’s the IMF and she have gotten into a series of major embarrassments recently.

First, she is being charged with a crime while she sits as head of the IMF and this crime is under French law. From her role earlier as a minister in the French government where there was a suit emerging against a bank and that bank got into enough economic trouble that it was bailed out by the French government, became a public bank and Lagarde allowed claimants against this bank who were political allies of her and her party to sue the French government. Not in court with the normal defenses you would have but through an arbitration system where unsurprisingly the French lost big time. This is ultimately reversed by a court. But this is seen as a scandal in which she attempted to bailout a major creditor by intervening to help them take an action that she should’ve been moving exactly the opposite direction to protect French funds. So it’s a weird crime from US perspective and the charge is negligence as opposed to deliberate crime. But it’s still obviously a major embarrassment.

Second big thing. The IMF has long been criticized, including by a Nobel Prize winner in economics, as being staffed, and I quote, “by third-rate economists”. And has been traditionally, while supposedly helping nations in economic crisis, it has been a very neoliberal hammer that says, hey actually we’re going to force your head of state out of state. And hey we don’t like a whole bunch of policies that you have that we think are not good for other European nations and such and so you are going to change all those policies.

DESVARIEUX: Like what they did in Greece?

BLACK: Like what they did in Greece. But even worse in not--in literally 60-70 different nations. And this is very tied in with the Washington consensus as well. You know pushing all these nations towards very right wing policies. Anyway, so IMF with all those problems has at least had a standing doctrine that says you can’t hammer the government in this way without giving it--and force it into position where it is in a long run debt trap where it can’t get out. Cause that’s just stupid right? And so when it came to Greece and the European Union wanted the IMF involved in the supposed bailout of the Greeks which is really a bailout of mostly German but not exclusively German banks. And they had to ignore this requirement.

End

DISCLAIMER: Please note that transcripts for The Real News Network are typed from a recording of the program. TRNN cannot guarantee their complete accuracy.



Comments

Our automatic spam filter blocks comments with multiple links and multiple users using the same IP address. Please make thoughtful comments with minimal links using only one user name. If you think your comment has been mistakenly removed please email us at contact@therealnews.com

latest stories

Should Sanders Continue the Fight Outside the Democratic Party?
Fed Inflation Target Keeping Wages Low, People Out of Jobs
Is Trump Dangerous for Russia?
Will the NDP Adopt Pro-BDS Platform?
Was the Georgian Conflict Started to Elect John McCain President in 2008? Pt.1
Massive Cuts to EPA Threaten Communities Already Suffering From Pollution, Climate Change
Whistle Blower Teacher Says Charter Schools Draining Students, Resources from Public Education
Trump's Budget Targets Climate Change Spending Across All Federal Agencies
US Has Interfered in More Elections Than Any Other Nation
Maryland Democrats Push Back Against Gov. Hogan's Support for ACA Repeal
Russia vs. USA: Who is the Threat, Who is the Aggressor? (1/2)
Democrats Fail to Dig into Trump's Shady Financial Ties During Hearing
Why is the Capitalist West Fighting with Capitalist Russia?
Baltimore City Council Passes Historic $15 Minimum Wage
UN Report Finds Apartheid Exists Within Israel
Neil Gorsuch's Woeful Record on Civil Rights
Federal Judge Orders Civil Rights Lawsuit Against Pocomoke, State of MD to Move Forward
Hundreds Rally to Demand A Fix to Baltimore's School Budget Deficit
Trump Adds Another Goldman Sachs Alum to His Administration
Empire Files: Abby Martin Exposes Steve Bannon
Wealthiest U.S. Households Save Big Under GOP Health Care Bill
'They are Taking Everyone': Families March Against Deportations in Phoenix
Baltimore Poised to Pass $15 Min. Wage as Business Lobby Launches Nationwide Rollback Campaign
Bankruptcy Protection, Debt Jubilee, Students Debt and the Credit System
BDS Activist Speaks About His Arrest by Israeli Police
Will Trump's Plan to Roll Back Fuel Economy Regulations Help American Autoworkers?
What is Money? Why Do Some Have More Than Others?
TRNN Replay: The Real Baltimore: Should Baltimore Raise its Minimum Wage to $15/HR by 2022?
What is Capitalism & Socialism? What Differentiates Them from Each Other?
Trump's Budget Shreds the Social Safety Net

TheRealNewsNetwork.com, RealNewsNetwork.com, The Real News Network, Real News Network, The Real News, Real News, Real News For Real People, IWT are trademarks and service marks of Independent World Television inc. "The Real News" is the flagship show of IWT and The Real News Network.

All original content on this site is copyright of The Real News Network. Click here for more

Problems with this site? Please let us know

Managed Wordpress Hosting