Watch the interview on Boom Bust here.
On the FED:
‘I don’t believe the FED has the role of global stabiliser… I believe that role ought to be played by an institution over and above the central banks but there is no such thing, so the FED is rightly focusing on its mandate and audience which is the people of the United States and its economy. We can’t blame them for that, but we can blame the politicians who are very deliberately leaving currencies and interest rates up to something called ‘the market’ instead of taking responsibility for stabilising the global economy.’
And on Greece, in response to Varoufakis’s statement that Greece should have defaulted on its debts in 2010 before European taxpayers became liable…
‘I have thought all along that Greece should never have been in the eurozone. Secondly, banks should not have thrown money at the Greek private sector – recklessly – which is what they did on the assumption that Greece’s debts would always be backed up by the German taxpayers… The European Commission should not have allowed that to happen and should not have turned a blind eye to that kind of crazy lending. Thirdly, Greece should really accept that the Euro is not sustainable.’
Greece did not default because the IMF exists to defend the interests of international creditors!