Christian Aid Boss Is Remarkably Stupid About The IMF’s New Head

People this ignorant – or perhaps we should say people this deliberately misleading – shouldn’t be allowed to tell us what we should be doing. Because, you know, they’re either ignorant or misleading.

The head of the IMF is a European. That of the World Bank an American. There’s a reason for this. The Americans and Europeans put all the money into both organisations. Thus they’re the major shareholders and who gets to be CEO is something the shareholders decide.…

See More

The IMF’s Warning About Trade Tariffs and Trade Wars

Actually, the International Monetary Fund is arguing that the major worry we’ve all got in this global economy of ours is the silliness with which certain people are approaching that subject of trade.

The basic background to the trade story is:

Tariffs Are A Bad Idea Anyway.
The entire aim of having trade is so that we can go buy those lovely things made by foreigners. We only export so as to be able to swap something for those foreign made goods.

See More

Tanzania’s Magufuli – Rightly – Won’t Let The IMF Publish Economic Report

Tanzania’s President, John Magufuli, won’t allow the International Monetary Fund to publish their usual report on the economy of that country. Quite rightly too – from the point of view of Magufuli that is for it would be most inconvenient politically. For what the report will and in fact does say is that his actions are screwing with that economy and its possibility for growth.

You know, the usual sort of thing we’ve seen with African strongmen over the decades.…

See More

IMF’s Lagarde Entirely Wrong About Corporate Profits Taxation

That we might want to alter the system of corporate profits taxation is fair enough. But if we’re going to do that then we really need to be getting the underlying economics right. Corporate profits tax isn’t a method of taxing a company – there’s no there there. Taxes are paid, in the end, by the wallet of some live human being getting lighter. The study of whose is the study of tax incidence. A company is simply a collection of people, the taxation burden will lie on some collection of people inside and outside the company.…

See More

The IMF’s Wrong About Venezuela – GDP Hasn’t Fallen By 50%

The International Monetary Fund tells us that Venezuela’s GDP has fallen by 50% since 2013. This is incorrect, it has fallen by much more than that. For, absent the oil extraction industry, Venezuela simply doesn’t have an economy any more, not in any modern sense of that word.

The problem here is simply that no one really is willing to believe the incredible destruction brought about by Venezuela’s Bolivarian socialism.

Thus this is wrong:

The size of Venezuela’s economy has halved in the space of six years, according to new projections from the International Monetary Fund as the country faces political turmoil.

See More

IMF Tells Ethiopia – No More Foreign Currency Market Borrowings, Probably Sensibly

The IMF has told the Ethiopian Government that it really must stop borrowing from the overseas markets in foreign currency – this is probably a very sensible idea. Not because more capital wouldn’t aid in developing the country, but because Ethiopia just isn’t that developed as yet. This means that it doesn’t have the fiscal room to take on debt levels which more advanced countries would simply laugh at.

This is actually one of those little problems we’ve got with development.…

See More

Dear Lord This Is Stupid – IMF’s Christine Lagarde On Gender Diversity

It’s something between horrifying and delightful to see such a glorious missing of the point in this missive from Christine Lagarde concerning the gender diversity of the workforce. Horrifying that it has been missed, delightful to find that we’re ruled by those quite so blind – for it means that we can dismiss much else of what they say where we’re merely unsure if they’re wrong.

So, what she’s saying is that in many of the usual measures we can see that having a gender diverse workforce increases production for the same total labour input.

See More

IMF Warns That Regulation’s Great – As Long As Banks Don’t Escape It

It does rather depend upon who you read here over the IMF’s latest warnings about debt, the next downturn and the final crumbling of capitalism. It’s entirely true that debt is now higher than it was in 2008 – maybe not the problem some think – and that there will be another downturn at some point. The question is, well, will the next one be as bad as the last? There it’s not so certain, thus the warnings.…

See More