We are protected. It is important to note that not all international investors are protected. Once the depreciation-induced losses are sustained, governments must decide how to deal with those inflated debt obligations. Complaints by local officials about the increased taxes required by IMF negotiators are disingenuous. The IMF provides political cover by appearing to force taxation policies upon the politicians whose cronies benefit most from the tax revenues that make bailouts possible.
Moral hazard plagues global capital markets today.
If the IMF has any hope of reform its own economists must begin to take it seriously too. Click here for an index of Articles .