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|
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.