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Some background: The IMF is one of several multilateral supranational bureaucracies (along with the World Bank and United Nations) hatched in the mid-1940s to help midwife a new world order.

The IMFs member governments fund its operations by taxing its citizens, to whom the IMF is virtually unaccountable.

Such an undemocratic setup was intentional; Franklin Roosevelt designated Assistant Secretary of the Treasury Harry Dexter White (a closet Communist with the concomitant collectivistic world view) as the principal.S.

Representative and lead architect of the IMF.

English: dark green - IMF members; light green - IMF members not accepting obligations of Article.

Viii, Sections 2, 3, and 4 of the Articles of Agreement.

Bureaucracies are masters of mission creep.

They constantly reinvent themselves, cleverly finding ways to expand in size, scope, power, and budget.

The IMF has perfected this art, having evolved from its original purpose of trying to facilitate orderly currency exchange rates as countries recovered from World War II to morphing into a global busybody that makes loanswith significant strings attachedto bankrupt governments.

What has the American taxpayer received in return for billions of dollars siphoned through the IMF to deadbeat governments?

Nothing but ill will from abroad.

First, the IMFs policy of lending millions, or billions, to fiscally mismanaged governments is counterproductive: Such bailouts help to prop up inept and/or corrupt governments.

Second, bailouts create moral hazard, inducing private corporations and banks to lend funds to poor credit risks, confident that IMF funds will make them whole.

Third, typical IMF rescue packages demand painful readjustments: 1) government spending cutse.

G., shrinking popular programs, laying off a percentage of government employees, reducing government pensionsthat understandably angers those adversely affected; 2) higher taxes in the name of balancing the budget.

There are two fundamental problems with these austerity programs.

First, recommending higher taxes is economically obtuse.

Tax increases are quack medicine.

Even Lord Keynes prescribed cutting taxes, not raising them, in times of economic distress.
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