IMF Managing Director Christine Lagarde in Davos

Christine LaGarde, managing director of the International Monetary Fund (IMF) talks about what must take place in order to begin sorting out the economic upheavel in the Eurozone. Clearly the message is disturbing despite her calm and measured delivery of the tasks and challenges ahead. Even the IMF--the organization itself--admits to the need to raise funds in order to help stabilize the Eurozone and to keep its own liquidity protected. One gets the distinct impression that there is so much to do, with so little time to do it in, that it is only a matter of time before the precarious house of cards collapses. Even if they could stabilize the European economy, how long until the next bond payments come due and the central banking system and EU commissioners will have to go back to the drawing table to buy more time. Even more disturbing, the efforts to stabilize the economies of those countries close to default are now reluctantly, in some instances angrily, handing over their fiscal sovereignty to the ECB and the IMF. In essence, we are seeing a coup spearheaded by the financial sector reshaping the Eurozone.