The International Monetary Fund (IMF) has made another mistake - a mistake that'll cost U.S. taxpayers a lot of money.
The organization's executive board yesterday (Tuesday) selected French Finance Minister Christine Lagarde as its new leader. A U.S. pledge of support Tuesday morning secured Lagarde's approval. She already had backing from European countries and major emerging markets Brazil, Russia, and China.
But with Lagarde in the driver's seat, the IMF is likely to continue lending billions of dollars to struggling European countries that are drowning in debt.
Those billions come from member countries that hold a financial stake in the IMF - and the United States is the single-biggest stakeholder.
This means that thanks to the IMF, U.S. taxpayers will keep funding countries that contribute little to the global economy.
"The IMF is a waste of money - your money," said Money Morning Contributing Editor Martin Hutchinson. "We'd be better off without the IMF and its terrible record of funneling resources down ratholes."
Here's why Lagarde will perpetuate that terrible track record.