Tuesday, November 22

Eurozone Debt Crisis is the IMF's Responsibility, Not the ECB's

Marc Chandler hits the nail on the head.

The IMF, which is funded by other sovereign countries, was invented precisely for dealing with problems like the current Eurozone debt debacle. The IMF is the proper lender of last resort to sovereign countries, not the central bank.

Central bank lending to sovereigns often ends in debt monetization and hyperinflation. There are sound reasons behind German stubbornness against turning the ECB into a 'bazooka'.

More on this topic, including why the 'experts' with near unanimity are calling on the ECB rather than the IMF, here.

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