Studies have shown the main purpose of the International Monetary Fund (IMF) is to prop up the value of the US dollar and economy. Its conditionalities on borrowers are a set of predetermined restrictions that never change from country to country no matter what the domestic economic problems are.

The most lethal of these conditions is the decrease in government spending which often includes reduction in essential services (health, education, social) which consequently have huge negative implications.

Net effects

The net effects of these conditions usually lead to a lower standard of living and a decreased economic climate to foreign and local investors.

Conspiracy theorists have argued that the IMF is part of a system that allows Washington to keep the world under its control. The effects of these conditionalities more often than not lower real economic value of domestic assets allowing global investors (mostly Americans) to purchase these assets at very low prices.

The IMF has always claimed its mission is to promote monetary cooperation and global financial stability with the purpose of supporting international trade and economic growth, but we must remember the IMF is ultimately run by the US Treasury. I have no doubt the Asian crisis was orchestrated by the IMF as they saw the growth of these countries as a direct threat to the US global economic system and this is the main reason why China is resisting pressure from the US Treasury to adjust its exchange to avoid falling victim as the Asian 'tiger' economies of the 1990s.

Jamaica's problems are many and deep, but going to the IMF would most certainly lead to another massive devaluation of our dollar, increased interest rates, more non-beneficial investment by foreign firms and prolonged dependency on the US dollar.

I am, etc.,

EVERT PALMER

Palmer@verticalinvest.com

North Carolina, USA