What signals does the EU safety chute emit?

I’m currently reading about the report of the IMF about Greece. You can find it under:http://www.imf.org/external/country/index.htm

I’m very skeptical over any of these just be states controlled supranational institutions. I feel we think there money for doubtful outcomes. And in a way I think this are parrallel universes cycling around themselves.
So the biggest problems with this organizations is that they “can not fail” whatever they do. It does not matter how much money they thing while contributing to keeping corrupt regimes running. You know there is not “market” for their offers.
Theres is but one IMF. So whatever they decide to do or not is conclusive.

This is near inerrable. Yes there may be critique voices. And still one has to concede there are also clever (and surely well paid) specialists there. So we probably can learn from their findings. Unfortunately we do not have any influence on how to react on those findings. So overall I see the IMF as part of the problem not the solution.

For normal banks the “lenders of the last resort” are in that order. The own central bank, the own government, (in the EU) the EU commission, and then comes the IMF) . So quite a lot of those “taking” away the responsibility on standing on one’s own feet. And still the IMF is plagued with one terrible problem. The just decide bureaucratically. They ask for papers over papers (which someone has to gather), then the follow procedures (which no the sure way a market tells whether you did right or wrong) . But if the procedures are followed, nothing can happen. They still will get their payments, and gain influence over time just because if somethings going wrong they will be the “saviors”.

But back to the report. I suggest really reading it there you can find a lot of information (unfortunately in diplomatic speech) which really makes it a plagued reading. However you can see that at least something happens.

As I can see this actions still have no calming impacts. If they actions would be honored or would have a good influence on the debt situation, it should be no problem to get new credits. But still the required interests are beyond anything one really can bear. If I do have to trust supranational organizations or markets I know what side to take. But the deledefs just see their side. They never really bother thinking about markets. It’s always the markets are evil (and we have to fight the markets) and they loose every time. But they do not learn anything from it.

Au contraire, they do the same mistakes over and over and over and over again. Just see “This time is different” and you can see, their fallings. Instead of not “having” some extra last lender of last resort” a new last lender is invented, every time. Now imagine a world in which this things were not their and money sound. Nobody could get that large to threaten the system and even then, there would be no one “saving” them. Would you expect the same hazardous behavior?

The realy problem we all have is that money is a monopoly of states, and they enforce it with any means. And that’s where we call get caught. So let’s work for freeing our money for any government influence and we’ll be much finer.

So what signals can you see in the EU “safety” chute. It’s the signal that wrong-doers are saved from their responsibility. And that’s what sticks. Everything in EUR land just tells. Don’t bother to live within your bounds. You can have party and after that you may have some hang-over but don’t be afraid, you can have the next party the day after tomorrow.

This signal is understood by the markets but not by governments. The interest rate of up to 15% and higher tell exactly what one can expect a default within the next three years….

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