It was good news to hear confirmed that the USA is not going to make more money available for the Euro. Apparently the US position, as reported again on today’s BBC, is that Euroland needs to sort its own problems out and pay its own bills. As the UK government has said it would only contribute to the IMF if all the main players do so, that looks like a helpful development. I guess China will also be reluctant to put money up for the Euro.
Douglas Carswell restated the main arguments against IMF attempted bail outs of the Euro well this morning on the Today programme. If the countries receiving IMF aid cannot devalue and default on some debt at the same time as cutting spending and borrowing more, the medicine cannot work. The IMF should stick to bailing out sovereign countries, not regions in a very badly constructed currency area that are being strangled by the very set up of the currency and the economic policy.