Lagarde's "Good Faith"

International Monetary Fund Managing Director Christine Lagarde has said that her team was continuing to negotiate with Greece "in good faith" over its debt issues.

She told Bloomberg TV the aim was to restore Greek competitiveness within a framework of debt sustainability.

Quoted by Reuters, she said:

"The objectives have not changed.

Everything has to add up."

Lagarde is of course being somewhat disingenuous, for she has neglected to mention that Germany has said "nein" to any for of debt relief for Greece.

Without debt relief, the IMF will not remain part of the Quadriga. Which brings us back to the "credit event" that the IMF was plotting, in order to bring about a solution to the Greek/German impasse. This "event" has, of course, been hotly denied by Lagarde.

However, she would deny that wouldn't she?