“That’s the flaw with words. They always force us to feel enlightened, but when we turn around to face the world they always fail us and we end up facing the world as we always have, without enlightenment. For this reason, a sorcerer seeks to act rather than to talk and to this effect he gets a new description of the world – a new description where talking is not that important, and where new acts have new reflections”
Carlos Castaneda

Tales of Power

IMF admits disastrous love affair with the euro

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Reading this wasn’t too surprising … a more worrying thought that came to me though was that isn’t this how most of our systems government, business, etc .. are run? The list of systemic failures is so typical … and yet here we are.

“The International Monetary Fund’s top staff misled their own board, made a series of calamitous misjudgments in Greece, became euphoric cheerleaders for the euro project, ignored warning signs of impending crisis, and collectively failed to grasp an elemental concept of currency theory.

This is the lacerating verdict of the IMF’s top watchdog on the Fund’s tangled political role in the eurozone debt crisis, the most damaging episode in the history of the Bretton Woods institutions.

It describes a “culture of complacency”, prone to “superficial and mechanistic” analysis, and traces a shocking break-down in the governance of the IMF, leaving it unclear who is ultimately in charge of this extremely powerful organisation.

… The report said the whole approach to the eurozone was characterised by “groupthink” and intellectual capture. They had no fall-back plans on how to tackle a systemic crisis in the eurozone – or how to deal with the politics of a multinational currency union – because they had ruled out any possibility that it could happen.

“Before the launch of the euro, the IMF’s public statements tended to emphasize the advantages of the common currency, “ it said. Some staff members warned that the design of the euro was fundamentally flawed but they were overruled.

… That the IMF failed to anticipate any of this was a serious scientific and professional failure.”

source via Yanis Varoufakis

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