Mar 29, 2010
John Lipsky, the deputy director of the International Monetary Fund (IMF), responded to the crisis by discussing austerity measures. But this time, the IMF was proposing austerity for the rich countries, known as the G7.
This deputy for the IMF, the financial organization in service to the great powers, declared, “The developed countries with high budget deficits [are invited] to start today to prepare their public opinion for austerity measures which will be necessary starting next year.” These measures “must be undertaken now by all countries which need a budget adjustment.”
Perhaps Germany and Canada might not need such measures, according to Lipsky. Meanwhile, he thinks the governments of all the G7 should continue their support of the capitalists – with such gifts as low interest loans, subsidies, and tax exemptions. So, rapid austerity measures will be needed to make up for the deficits of the other five countries: France, Great Britain, Italy, Japan and the U.S.!
Lipsky recommends drastically reducing benefits from government run health and retirement systems. He recommends forcing workers to stay on the job longer in order to get a normal pension. He recommends raising taxes and reducing public expenditures.
The IMF always intervenes to support the policy of state aid to capitalists and banks, along with attacks on the working population. The Bush and then the Obama administrations have already started down this path.