IMF ECONOMIST SAYS IMF HID EVIDENCE OF EURO TROUBLE
The trouble in Spain was recently suppressed a few weeks ago when it was agreed that Europe would bail out Spain's banks directly, but this was dependent on Germany ratifying the ESM. But this is not as straightforward as was first thought because the Federal Constitutional Court has said it will not say until September whether Germany can join the ESM.
A senior economist at the IMF has just resigned, and in his resignation letter he accused the IMF leadership of covering up the true state of the Eurozone, and criticised Christine Lagarde.
Debt crisis: IMF ‘suppressed signs that Europe was facing debt crisis’[source : Debt crisis: IMF ‘suppressed signs that Europe was facing debt crisis’, The Daily Telegraph, http://www.telegraph.co.uk/finance/financialcrisis/9416608/Debt-crisis-IMF-suppressed-signs-that-Europe-was-facing-debt-crisis.html, 21/07/2012]
The International Monetary Fund deliberately suppressed evidence that Europe was heading for a debt crisis, according to a blistering resignation letter from a senior economist at the fund.
Peter Doyle, an economist in the IMF’s European department, also used the letter to attack the appointment of Christine Lagarde, the fund’s managing director. The allegations are particularly embarrassing coming from someone who until last month was a senior official at the Washington-based institution and at a time when Europe’s debt crisis shows little sign of easing.