The International Monetary Fund stands ready to help riot-torn Egypt rebuild its economy, the IMF chief said Tuesday as he warned governments to tackle unemployment and income inequality or risk war. Dominique Strauss-Kahn (left) also said rising food prices could have “potentially devastating consequences” for poorer nations, and warned that Asia’s fast-growing economies faced a risk of a “hard landing”. Overall, according to the IMF managing director, widening imbalances across and within countries were sparking tensions that threaten to derail the fragile global economic recovery — and could even spark armed conflict. – AFP
Dominant Social Theme: The IMF is a very necessary instrumentality.
Free-Market Analysis: It is fascinating to watch world events unfold through the prism of the Internet. In this AFP article (excerpted above), we can see clearly how Dominique Strauss-Kahn, one of the more brutal and obvious functionaries of the power elite, intends to capitalize on the current Middle Eastern turmoil for the benefit of his agency, the International Monetary Fund.
Strauss-Kahn has attempted before to use various crises before to burnish the reputation and utility of the IMF. Most recently, he gave an interview given to Der Spiegal that cast the IMF as an inevitable precursor to a world central bank. At the time, we wrote Strauss-Kahns position seemed to be that the IMF, “need only graduate from SDRs to bancors and expand its monetary authority.” His comments were so extreme that our analysis concluded that the Anglo-American elite “seems to have shed any inhibitions about moving slowly or deliberately toward global governance goals.”
Now, Strauss-Kahn is at it again, predicting doom and gloom – a series of fear-based dominant social themes – and proposing the IMF as the solution. In a speech made in Singapore, he claimed the IMF stood ready to help with various global imbalances, including an emergent food shortage. “The IMF is ready to help in defining the kind of economic policy that could be put in place,” he asserts.
Strauss-Kahn is eager to unearth potential ruin in the Middle East. He indicated that unemployment and a growing income gap was a “strong undercurrent of the political turmoil in Tunisia.” Other countries exhibited “rising social strains,” and these strains, he seems to believe could lead to “rising protectionism of trade and of finance.”
In the speech, Strauss-Kahn reportedly worried about protectionism as a result of potential discord between nations. Within this context, he mentioned China’s undervalued yuan but did not emphasize an immediate adjustment as regards the US dollar. Such a reconfiguration ought to be a slow one to avoid shocks to the larger global economy, he indicated. “While the recovery is under way, it is not the recovery we wanted,” he reportedly said. “It is a recovery beset by tensions and strains — which could even sow the seeds of the next crisis.”