I don’t like giving international bureaucrats tax-free salaries. And it really galls me when they use their privileged positions to promote statism. So you can understand why I’m not a big fan of the International Monetary Fund.
It should be obvious, to anyone reading this, that Spain is in an economic depression as well as bankrupt. It is equally obviously that eurozone imbalances and a flawed treaty are to blame.
The IMF was created for the purpose of helping the manage the system of fixed exchange rates that was imposed after World War II. That system no longer exists, yet the IMF is still plaguing us.
Reduction in government spending was not the problem. Rather massive tax hikes and lack of badly-needed reforms was the problem.