The Global Financial Crisis of 2009 was ignited by the US Mortgage Crisis. The Mortgage Crisis was caused by banks offering home loans to financially unstable people who could not possibly afford to keep up payments on the loans. They did not meet even the barest eligibility requirements for responsible lending. The loans were defaults waiting to happen.
I mean, this is fundamental. If you are working a minimum wage job, you do not get applications in the mail for a Visa Platinum Card; you don’t qualify for a $500,000 line of credit. If you go bankrupt, you can’t get a bank loan. First, you have to stabilize yourself financially, increase your real income and your savings, and so on.
The IMF, however, PREFERS lending money to unqualified debtors. Greece was totally insolvent, and received the biggest loan in the history of Europe. Egypt is essentially bankrupt, but has been offered the biggest loan the region has ever seen. Why? This makes no economic sense.
The explanation is simple.
The IMF is not a lender; it is a broker. With the money they give to bankrupt states, they purchase their sovereignty. Once they have their sovereignty, they groom the country for foreign investors. Exactly like a pimp who ruins a woman by addicting her to drugs or blackmailing her, to force her into prostitution. Pardon the vulgar comparison, but it is a vulgar reality.