• His powerful influence makes the sexual assault case all the more complicated. The man has a wide array of influence on global politics due largely to his current position, which leads a group that oversees the global financial system. And with a significant piece of evidence — Strauss-Kahn’s cell phone — reportedly left at the scene, there is said to be enough evidence to charge him. (EDIT: They have — with charges including attempted rape.) He reportedly plans to plead not guilty. This isn’t just a tabloid fodder-type story, though the New York Post, shown above, is certainly having fun with it. A few broader implications of Dominique Strauss-Kahn’s arrest:

• one With the global financial and debt crises still major problems, the International Monetary Fund plays a huge role in global politics — especially in countries like Greece. And Strauss-Kahn leads the IMF.
• two While he hasn’t officially announced his plans to run for president of France, he has been polling the best against the unpopular Nicolas Sarkozy. He could leave the Socialist party in a bit of a bind.
• threeStrauss-Kahn’s charges could force the IMF to pick a new leader on the fly — which could have a ripple effect on the debt crisis. He’s considered conservative; his successor may take a harsher stance. source

• » To put it another way: The decisions the IMF makes have strong direct and indirect effects on world economies. Last year, for example, the IMF and the EU twisted Greece’s arm so the country would put in place strong austerity measures in exchange for a massive long-term loan. And here is this guy, in charge of a group that indirectly caused rioting in the streets of a major city, accused of a crime that’d make Bill Clinton’s whole impeachment fiasco seem like nothing. It makes you grit your teeth thinking of what that means for global economies.

Posted by Ernie Smith • Permalink