The International Monetary Fund: Challenges and Contradictions Testimony to U.S.A. Congress (https://wp.me/p2jyCr-Xn)

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TESTIMONY to U.S.A. Congress  28 of September 1999

https://www.cato.org/publications/congressional-testimony/international-monetary-fund-challenges-contradictions

The International Monetary Fund  Challenges and Contradictions Testimony to USA CONGRESS

THE INTERNATIONAL MONETARY MONEY FUND CHALLENGES and CONTRADICTION TESTIMONY

Ian Vasquez 

Ian Vázauez 

Link to COME BACK here > > https://wp.me/p2jyCr-Xn 

September 28, 1999

International Financial Institution Advisory Commission

United States Congress

The International Monetary Fund has grown in resources and responsibilities since it was established in 1944. It has become abundantly clear that the IMF’s “original rationale no longer fits,”1 that the world economy has changed dramatically since the fund was established, and that the increasing frequency and severity of economic crises in recent years require a rethinking of the IMF’s role in the global financial system.

The IMF has recognized this need and is introducing some reforms to the way it operates. The fund has in fact developed new missions for itself many times in response to crises or changes in the world economy. Those episodes have included the end of the system of fixed exchange rates in the early 1970s, the subsequent oil crises of that decade, the Third World debt crisis of the 1980s, the collapse of socialism, and, beginning with Mexico in 1994, emerging market financial crises.

In short, the IMF has expanded its role from providing short-term loans based on macroeconomic policy change to providing longer-term aid conditioned on structural economic reforms to providing bailout funds and becoming an international crisis manager. As the graph shows, new missions and greater lending have led to periodic increases in the fund’s resources, which donor nations have granted every time such increases have been requested.

Sources: IMF, International Financial Statistics (various issues); and IMF, Financial Organization and Operations of the IMF(Washington: IMF, 1990).

The IMF today finds itself in an awkward position. It continues to provide massive aid to countries suffering from financial crises while wishing to avoid creating moral hazard. The agency has thus proposed initiatives to “bail in” the private sector, so as to make investors bear more of the cost of bad investment decisions. Conversely, the fund has created a line of credit to provide aid to countries before crises occur, so as to prevent them. Yet preventive lines of credit are likely to increase moral hazard, while efforts to force losses on the private sector may precipitate the very crises they intend to prevent. Finally, the IMF wishes to become more transparent and improve its surveillance function. Its dual goals of preventing the outbreak of financial turmoil and maintaining relations with client countries, however, may undermine the fund’s credibility.

Many of the problems the IMF seeks to resolve would be reduced or eliminated with increased reliance on direct negotiations between lenders and borrowers in international finance and decreased reliance on IMF lending and mediation. That has become more and more evident since the early 1980s. To see why, it is useful to look at the evolution of the IMF.

Early Years

The International Monetary Fund was established at Bretton Woods in the aftermath of the Great Depression and at the end of World War II, when confidence in a liberal world economy was low. The fund’s purpose was to maintain exchange rate stability by lending to countries experiencing temporary balance of payments problems. In a world of fixed exchange rates, countries would only be allowed to alter their exchange rates if there were fundamental imbalances in their economies. In this way, the IMF would promote international stability and avert competitive devaluations.

Although world trade did increase under the Bretton Woods system, trade did not return to its 1913 level (as a share of the global economy) until the mid-1970s, after the Bretton Woods system was abandoned. Moreover, the system was not as orderly as envisioned by its founders. Sharp and sudden currency devaluations would occur. Economic historian Leland Yeager observed that “The authorities of a country desiring to change its exchange rate typically make up their own minds on the matter and then simply notify the Fund. Though this notification is phrased as a request for permission, the Fund actually faces the choice only between acquiescing or risking loss of face by seeing its authority flouted and the change made anyway.”2

The Bretton Woods system was, in fact, “unworkable from the start” and “promptly began to break down” once major European countries began lifting capital controls on their currencies in 1958.3 The breakdown occurred because countries pursued a combination of unsustainable policies-free capital flows, fixed exhange rates, and independent monetary policies. By the time President Nixon finally abandoned this system in 1971, thus ending the international system of fixed exchange rates, he was merely acknowledging economic reality. That similar scenario has been played out in the 1990s as financial crises have forced developing countries to learn that they cannot pursue both independent monetary policies and tie their currencies to the dollar in a world of free capital flows. It is somewhat ironic then, that the recent financial crises in Asia and elsewhere have elicited calls for the establishment of a “new Bretton Woods.”

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PatAgonica

Soy el Dr. Gastón Alejandro Saint Martin (ARDMS. RVT. RPVI eligible, MD. CCPM). Medico patagónico; me gradué en la UNBA (Universidad Nacional de Buenos Aires, en 1961) Recién graduado y casado fui a hacer mi entrenamiento en la Universidad de Louisville, (UdeL) Kentucky, USA, la mas antigua Universidad Municipal de La Unión; pobre, pero de excelente nivel académico; con una pequeña escuela de medicina. Louisville está en la margen izquierda del rio Ohio (afluente del Mississippi) Elegí a UdeL por estar entre los rio Ohio y Tennessee, que era la zona mas subdesarrollada de La Unión, (cuna de los "Hillbillies") montañeses pobres, poco ilustrados, casi analfabetos pero gente honrada, noble y muy trabajadora; donde era de esperar encontrar problemas de patología medica y socio económicos similares a los de la población rural patagónica indigente. Los médicos residentes de la Universidad de Louisville atendíamos al Louisville General Hospital y al Children’s Hospital of Louisville. Finalizado mi entrenamiento, y al tener yo visa de emigrante, me pude quedar en USA, donde los abogados jueces y los médicos con residencias de entrenamiento completas, teníamos un brillante futuro económico, estabilidad y brillo social. La tentación para quedarse fue muy grande, pero cumplimos mi plan regresando a casa; Argentina (No a Buenos. Aires.) sino a La Patagonia (Gral. Roca, Rio Negro), donde trabajé intensamente, no solo en medicina asistencial sino en política. Para el inicio, recluté un pequeño grupo de médicos argentinos jóvenes entrenados en USA y Canadá con quienes creamos al Instituto Medico del Comahue, el pequeño hospital austral privado pionero en medicina asistencial moderna. Construimos el edificio por esfuerzo propio, y por administración, con la dirección técnica de mi padre (Ingeniero Prospero Saint Martin). Tuvimos muchos éxitos y fracasos. Nos integramos al Colegio Medico de General Roca, donde fui el primer organizador de la primer biblioteca medica patagónica. De nuestros Colegas Veteranos aprendimos la Filosofía Ético Moral Medica Hipocrática) y a ser médicos humanistas, antes que corporativos." Allí, practicando, aprendimos las normas básicas de cortesía entre colegas y pacientes. No fue fácil la convivencia y el pasaje armonico de lo (clásico) antiguo a lo (bueno) moderno, pero ¡lo logramos ... y muy Bien! En el ano 2000/2002 La Anarquía establecida Argentina desde el 10 de Septiembre de 1930 estalló y ya “no pude tolerar al criminal anárquico mamarracho republicano Argentino" que culminó con el "Robo Legalizado" (Google "The Legalized Theft" by Steve Hanke - CATO Instituto and/or Johns Hopkins economist) Como muchos de los argentinos ordenados, responsables, con importante capital de trabajo sin deudas, con algunos ahorros PERDIMOS TODO! Yo no perdí mis edificios, mi casa, mi Consultorio Radiológico) ni mi costoso instrumental diagnostico pero al quedar fuera de corporaciones medicas-hospitalarias corruptas, y fuera de los canales de facturación y cobro ... me encontré despojado de uno de los derechos humanos mas importantes “EL DERECHO A TRABAJAR” , del que depende mi “DERECHO A LA PROPIEDAD” y derecho a de “VIVIR en LIBERTAD” como me de la gana y sin pedir nada a nadie (¡LIBRE ALBEDRIO!) Por ello decidimos volver (ya estando jubilados) por segunda vez a USA. Hoy tengo otra residencia legal en Chicago (Oak Park, 60301) Mi mentor (en USA y Argentina) ha sido el Dr. Rene Favaloro (pionero del bypass coronario), con quien (cada uno por su lado) hemos compartido los mismos dilemas, para decidir volver, y para adaptarnos a esta ANARQUÍA Argentina (ver www.29deJulio.wordpress.com ) – La ANARQUÍA en la que cayó La Republica Argentina el 10 de Septiembre de 1930, fue causado por errores garrafales del GOBIERNO DE LOS ESTADOS UNIDOS DE NORTEAMÉRICA. (Presidente Herbert Hoover (POTUS 31) ...MAS... errores garrafales en la "ACORDADA UNÁNIME de LA TOTALIDAD DE LOS JUECES DE LA CORTE DE JUSTICIA ARGENTINA" ...MAS... errores garrafales del Gobierno del Reino Unido de Gran Bretaña (UK) ...MAS... el error de un soldadito con grado de General y cáncer de estomago Gral. Félix Uriburo) que no se atrevio a desobedecer al Jefe de su jefe cuando le ordenaron "violar a La Constitucio ... "en nombre de ella??) y asi TODOS ELLOS JUNTOS, en un contubernio internacional, por primera vez en la historia de La Republica Argentina depusieron a un Presidente Constitucional, (Presidente Hipólito Yrigoyen) electo dos veces (en periodos NO consecutivos), por el voto popular, y depuesto con la absurda e ignorante excusa (si no fue mentirosa) de ser "ser viejo e inoperante..."

Categories A QUIEN TEMO ES A MI GOBIERNO, ANARQUIA, ANOMIA, ARGENTINA QTP?, ARTICULO 14, ARTICULO 15, ARTICULO 18, ARTICULO 19, ARTICULO 20, ARTICULO 28, ARTICULO 29, CONSTITUCION ARGENTINA 1853, CONSTITUCION NACIONAL 1853, EL CRIMEN DE LA GUERRA, ESQUIZOFRENA-ANARQUIA, FCPA or FSIA, It's the gavernment I'm affraid of, Juan B. ALBERDI, LAS BASES, LAWLESSNESS, MALVINAS/FALKLAND, SASS Sociological Anarchic Schizophrenic Syndrome, Sociological Anarchic Schizophrenic Syndrome (SASS), TIRANIALeave a comment

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