So our Chancellor has decided just about unilaterally to give another £10 billion of taxpayers’ money to the International Monetary Fund.

[adsenseyu1]George Osborne has rightly come under fire for this act from within the ranks of his own party as well as those of the opposition.

Shadow Chancellor Ed Ball said “In Washington, George Osborne tried to claim it was right to give £10billion as Britain is part of the solution to the Eurozone’s problems. But the Chancellor is in denial because he has imposed on Britain the same extreme austerity that has strangled many Eurozone economies.”

And Tory MP Douglas Carswell said that it was ‘madness’ while fellow Conservatives Mark Reckless and Peter Bone also savaged the move.

Then, when interviewed on the telly Osborne made a great slip by initially calling it a ‘donation’ prior to correcting himself.

Osborne claims that we have loaned this money to the IMF on which we will earn interest and that no-one has ever lost money when lending to the IMF.

This ‘loan’ is all part of a massive fund needed to keep the Eurozone afloat. Without it we are told the markets would rip the single currency, followed by the worldwide economy, asunder. The amount required by the IMF just keeps going up and up with the IMF boss Christine Lagarde circulating the globe twisting arms for ever more. Now, in the face of imminent elections, the USA has decided that enough is enough and won’t be giving any more (for now). Do they know something we don’t?

In the meantime in the background all sorts of quantitative easing, money printing, secondary market ECB bond buying etc is happening. All designed to keep the banks from collapsing and keeping an elite status quo by just adding to everyone else’s debt commitments.

If this is not proof that we should have swallowed the bitter pill of letting banks collapse at the start of this debacle I don’t know what is. But then we would have had to really think about how we want our society to be constructed and maybe even taken much of the money from the few and redistributed it more responsibly while we built a better society. That of course would involve some very bright lights to be shone into some very murky areas with many fundamental questions to be answered. But we would now be getting through the worst and building a future, not facing a decade or more of austerity.

The powers that be of course would do anything to prevent anything like that happening. They would rather spend our children’s and grandchildren’s money to ensure that their own positions are secured into the future.


Christine Lagarde by MEDEF

Christine Lagarde

Image by MEDEF (Christine Lagarde) [CC-BY-SA-2.0 (], via Wikimedia Commons