Wednesday, 21 September 2011

Ask More Questions

This year saw the very high profile fall from grace of Dominique Strauss-Kahn, the former head of the IMF, in the alleged rape case. The trouble with mud you see is if you throw enough of it, it sticks, and with the ever present Murdoch Newscorp, there was plenty of it flying around. The Times, The Sun and others lead a relentless campaign about the goings on that night.

Strauss-Kahn was the head of the IMF at a time of great financial instability for the world. Quantitive Easing had become a way of life in trying to ease the economic tensions of the world and Strauss- Kahn famously disagreed with this philosophy. On September 27th 2010 Brazilian Finance Minister Guido Mantega claimed that the world was "in the midst of a currency war", Strauss-Kahn however was toeing the party line about the fear of a currency war and saying the chances of this were low. By early October he was singing a very different tune. He went on to say using currencies as weapons "is not a solution [and] it can even lead to a very bad situation. There's no domestic solution to a global problem"

A house built of cards is destined to collapse.

Sealed with a handshake
In the 2010 movie 'The Inside Job', narrated by Matt Damon, Strauss-Kahn disagreed with QE on the basis that flooding the market with more money would not solve the problem that the capitalist system creates. What happened next has been well documented. Strauss-Kahn was accused by a solitary maid of assault of a sexual nature. He stood down as IMF chief and was duly replaced by the current head, Christine Lagarde, and a nice picture appeared in a Murdoch newspaper of Nicolas Sarkozy and Rupert Murdoch shaking hands prompting lines like "sealed with a handshake?"  The French Presidents main rival for the election campaign in 2012 had been dealt a severe blow and with the history and evidence of Murdoch's influence over Governments in the UK so clear it raises the question "was there foul play at work?"

Christine Lagarde has no issue with QE, and in the last week had authorised millions of US Dollars to be released into the money system to help ease fears of economic slow down in the Euro zone and the fear of Greek debt default.

Not only had the head of the IMF, who had made a u-turn on policy of currency war been removed but so too was Sarkozy's main rival for the 2012 Presidential Campaign.  Two birds with one stone.