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Step Aside Abe's Deflation "Monster"; Meet LaGarde's Deflation "Ogre"

Tyler Durden's picture




 

What could be worse than a falling cost for things that the increasingly cash-strapped consumer desires? We are not entirely sure but Christine Lagarde is deathly afraid of it...

  • *LAGARDE SAYS RISING RISK OF DEFLATION MUST BE FOUGHT DECISIVELY
  • *LAGARDE URGES OFFICIALS TO `FORTIFY THE FEEBLE GLOBAL RECOVERY'
    *LAGARDE SAYS U.S. MUST AVOID EARLY WITHDRAWAL OF FED SUPPORT
  • *LAGARDE: JAPAN'S INITIAL BOOST FROM `ABENOMICS' WEAKENING A BIT
  • *LAGARDE SAYS EURO-AREA MONETARY POLICY `COULD STILL DO MORE'

In other words, 5 years of debt monetization on an unprecedented scale were not enough! Get back to work Mr Draghi, Mrs Yellen, and Mr Kuroda.

 

Lagarde (via Bloomberg):

"The world could create more jobs before we would need to worry about the global inflation genie coming out of its bottle,” Lagarde said in a speech at the National Press Club in Washington.

 

If inflation is the genie, then deflation is the ogre that must be fought decisively,” she said.

 

She recommended that central banks in the most developed economies wait until “robust growth is firmly rooted” before ending unconventional monetary policies.

 

...

 

In the U.S. “it will be critical to avoid premature withdrawal of monetary support and to return to an orderly budget process, including by promptly removing the debt ceiling threat,” she said.

 

It seems its inflate-or-die - no matter what the damage (but weren't we told that recovery is here?)

 

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Wed, 01/15/2014 - 14:53 | 4334702 Non Passaran
Non Passaran's picture

Fuck you, Lagarde!

Wed, 01/15/2014 - 15:00 | 4334726 Cult_of_Reason
Cult_of_Reason's picture

She's right about deflation though.

No matter how much the Fed prints, the Velocity of M2 is plunging.

http://research.stlouisfed.org/fred2/series/M2V/

Wed, 01/15/2014 - 15:02 | 4334752 LawsofPhysics
LawsofPhysics's picture

deflation of what?  be specific.  The supply and velocity of "money" become pretty damn irrelevant when that currency is no longer accepted.

Wed, 01/15/2014 - 15:06 | 4334766 eclectic syncretist
eclectic syncretist's picture

If they truly wanted inflation they would give the printed notes to common people and not the banks.  It wouldn't be any harder to do than that.  Their sophisms on the matter are mere pissings in the wind.

Wed, 01/15/2014 - 15:07 | 4334780 LawsofPhysics
LawsofPhysics's picture

See my post below.  We are here because there i fundamentally no rule of law and the system has been rewarding irresponsible behavior for quite some time.  Nothing changes until the moral hazard is addressed, period.

Wed, 01/15/2014 - 15:13 | 4334796 hedgeless_horseman
hedgeless_horseman's picture

 

 

Meet LaGarde's Deflation "Ogre"

For us peasants with savings and no debt, the ogre known as deflation is actually not the monster it is made out to be... 

...inflation is the real monster.

Wed, 01/15/2014 - 15:13 | 4334813 ACP
ACP's picture

Or better yet, Bernanke's inflationary orgE.

(photo not available)

Wed, 01/15/2014 - 15:15 | 4334823 Herd Redirectio...
Herd Redirection Committee's picture

Those with income and little debt will benefit from deflation.

Problem, the TBTF and the government are highly leveraged.  They stand to lose from deflation. And there is your answer as to why deflation 'must be fought'.

Wed, 01/15/2014 - 16:38 | 4335131 trader1
trader1's picture

+1

lagarde is on script with the new ad campaign for hyper-inflation.

i'm surprised the Tylers haven't made the connection between her remarks and this past weekend's basel banking comittee outcome, but maybe i missed it.1  

 

http://online.wsj.com/news/articles/SB1000142405270230381970457931658409...

World banking regulators said they would soften the terms of a rule meant to ensure banks' soundness, bowing to pressure from banks that had argued it would stifle their lending to consumers and businesses.

The Basel Committee for Banking Supervision, made up of banking regulators from around the world, said it had revised the definition of its leverage ratio in ways that will allow banks to report lower levels of overall risk. The leverage ratio measures capital held by a bank against its total assets, so the changes will lead to higher reported capital ratios. That will reduce the pressure on banks to either shed assets or raise more capital to meet the requirement.

The biggest beneficiaries of the changes appear likely to be banks most involved in securities and derivatives markets. Most important, the rules no longer require banks to count 100% of their off-balance-sheet assets. That not only includes most of banks' derivatives exposures, but also the guarantees and letters of credit that are essential to greasing the wheels of international trade.

In addition, the changes allow for extensive "netting" of securities-financing transactions, such as repurchase agreements, or "repos," for greater counting of margin payments received from counterparties. And they let banks eliminate double-counting of exposures involving central counterparties. Those changes will have the effect of reducing assets reported under the leverage ratio, increasing banks' reported ratios.

The announcement is the latest in a series of amendments to the aggressive new rules that regulators drew up in reaction to the 2008 financial crisis, in an effort to make the financial system safer. Much of that fine-tuning has had the effect of softening the impact of the new rules, as the industry has managed to persuade regulators that their plans were overzealous. Sunday's announcement follows a similar relaxation of a new rule on minimum liquidity standards at the start of last year. It also follows a significant dilution in the U.S.'s so-called Volcker rule, which is an attempt at curbing speculative trading by banks, and signs from the European Union that it will soft-pedal parallel plans of its own.

 

___________________________________________

1i try not to visit this site too many times throughout the day, but it's tough.  it's an addiction i'm trying to fight, not so quite effectively. i'm finally beginning to question what the hell it is i actually gain from reading and commenting here.  although, ZH has had such an invaluable effect on my development as a person in the last 4+ years.  it has definitely been quite an interesting experiment in retrospect.  what do i gain from continuing this experiment?  what do i do with the time gained by focusing less on the daily noise and focusing more on the longer term perspective.  that's a battle that's winnable right now, and it's in my mind.  oh shit, i'm opening my thought processes to the ZH world.  and the NSA?  hello friends.  one love :-)

 

commence the junking!  i love you too :-)

Wed, 01/15/2014 - 15:20 | 4334841 maskone909
maskone909's picture

the moral hazard in finance is contingient to money in politics.  see super PACS.

the fish rotts from the head.

Wed, 01/15/2014 - 15:34 | 4334883 LawsofPhysics
LawsofPhysics's picture

Simple solution then, cut the fucking heads off.

Wed, 01/15/2014 - 15:51 | 4334949 El Vaquero
El Vaquero's picture

What is that phrase you are so fond of?

Wed, 01/15/2014 - 15:09 | 4334782 Cult_of_Reason
Cult_of_Reason's picture

"deflation of what?"

See CRB Index
http://i40.tinypic.com/2zp1nck.png

Wed, 01/15/2014 - 15:14 | 4334811 LawsofPhysics
LawsofPhysics's picture

And rent/housing, food, healthcare, energy, education?

Moreover, if the "world economy is recovering", then there can be no "threat of deflation".

Again, pull your head out of your ass.

Wed, 01/15/2014 - 15:23 | 4334849 Cult_of_Reason
Wed, 01/15/2014 - 17:10 | 4335243 cougar_w
cougar_w's picture

The inflation v deflation arguing that goes on around here seems odd. On the one hand, everyone says unemployment is played down and the real number in the US is probably 20% in places. Then they say that the Fed printing money is inflationary and hyperinflation is in the wings.

o rly.

The question is not about the abstract or monetary value of money. It is instead about the ability to pay and the willingness to buy. People simply are not buying "it" anymore. They are un- or under-employed with few prospects and are flat broke. They have no money, at any value inflated or otherwise, no prospects for such, and in an increasing number of locales cannot acquire essentials except as parasitic debt-money or as government handouts, both of which are in terminal decline. In most places families are making it month-to-month, sticking to the basics, and laying low.

We can maybe eventually expect to see monetary inflation of some kind in the things people simply cannot live without (imported food and fuel, where US$ must compete with other currencies) but not in things they can stretch for a while (clothing, electronics) and none at all in things they cannot hope to afford (entertainment, new cars, higher education, luxury goods). Maybe the rich will drive up the cost of those things, but that's Wall Street eating the world with free money from QE none of which makes its way to Main Street.

Of course, nobody really knows what will happen. But seriously, expecting broke Americans and small business to drive a hyperinflationary episode by greedily gobbling up everything on the shelves with all their inflated Bennie Bucks is just laughable.

Wed, 01/15/2014 - 17:29 | 4335307 Cult_of_Reason
Cult_of_Reason's picture

Most people don't understand our fractional banking system and extraordinary ability of the banks to increase the money supply exponentially (by making loans), BUT no matter how much the Fed prints, there is no demand for loans in the economy (due to structural problems).

Japan has been printing like there is no tomorrow for 25 years and still cannot break the back of deflation due to structural problems. I think the US is Japan.

Wed, 01/15/2014 - 19:38 | 4335749 Its_the_economy...
Its_the_economy_stupid's picture

@Cougar

 

Keep talking

I'm listening.

Thu, 01/16/2014 - 01:22 | 4336944 maskone909
maskone909's picture

Dont know why u got the down votes cuz ur spot on

Thu, 01/16/2014 - 10:19 | 4337552 Cult_of_Reason
Cult_of_Reason's picture

I'm sure the down votes are coming from the gold bugs. They have convinced themselves about imminent hyperinflation and get angry (anxious about last year ~30% gold loses and in denial about strong deflationary forces in the economy) when they hear about deflation.

Anger is an early stage of the cycle, long way to go before gold becomes an attractive investment near the capitulation.

Thrill > Euphoria > Complacency > Anxiety > Denial > Anger > Bargaining > Depression > Acceptance > Fear > Panic > Capitulation

Wed, 01/15/2014 - 18:23 | 4335499 rabbitusvomitus
rabbitusvomitus's picture

deflate away, eyes gots cash money!!! poppa needs a new caddy for cheap!

Wed, 01/15/2014 - 15:02 | 4334754 NihilistZero
NihilistZero's picture

No she's not.  The FED's policies will inevitably worsen the unavoidable asset deflation.  By stoking commodity prices higher without providing a raise in the real wages of working people you get an inflationary spike followed by a deflationary crash.  The expansion of credit is doing nothing for most working peoples balance sheets and the run up of Housing Bubble 2.0 and Stock Bubble ver whatever CAN NOT be sustained without an increase in the real and disposable income of working people.  All the FED is doing is making the roller coaster drops that much more steep and close together.

Wed, 01/15/2014 - 15:07 | 4334773 Cult_of_Reason
Cult_of_Reason's picture

"without providing a raise in the real wages of working people"

Dude, this is deflationary.

Wed, 01/15/2014 - 15:11 | 4334802 LawsofPhysics
LawsofPhysics's picture

Not if the cost of essential commodities and services that the working person must purchase are still rising.

Pull your head out of your ass.

Wed, 01/15/2014 - 15:21 | 4334846 maskone909
maskone909's picture

stagflation

Wed, 01/15/2014 - 16:09 | 4335027 NihilistZero
NihilistZero's picture

We're experiencing stagflation now.  An early 80's style deflation is coming wheter Mr. Yellen and company want it or not...

Wed, 01/15/2014 - 17:21 | 4335278 cougar_w
cougar_w's picture

It could end up to be way worse than anything we've ever seen, at least in the recorded history in the west.

The amount of inter-dependent economic gearing right now is truly terrifying. In the US, we are massively dependent on imported oil even for our domestic food production and distribution. Once the shocks start and people can see the monster clearly, they might drop out of the consumer system completely and go it alone however they can; quit the day job, grab some land, setup a homestead, defend it with the neighbours, and forget about the world. At which time there will simply be no buyers for anything at all at any price.

Except maybe for shovels and seeds. And as always we'll probably end up murdering each other over access to water and land.

Wed, 01/15/2014 - 19:40 | 4335770 Its_the_economy...
Its_the_economy_stupid's picture

Ok, stop talking,

Now I'm scared.

Thu, 01/16/2014 - 15:49 | 4338664 NihilistZero
NihilistZero's picture

I'm not easily sold on the apocalypse scenario.  Not saying it's not possible, but everytime I read a good Popular Mechanics article or something elsde science related I doubt the Oil doom scenario.  The fact that a Hydrogen car exists (along with many other pieces of energy tech) has led jme to believe the oil dependency is much more political the practical.  I'm no tin foil hat imagining a world od water cars tomorrow if not for Exxon, but at the same time we live within shouting distance of a million years old perpetual energy machine called the sun.  I fully expect Nuclear Fusion Energy to be achieved within my lifetime.

Wed, 01/15/2014 - 15:02 | 4334755 eclectic syncretist
eclectic syncretist's picture

She's got the hots for Yellen.

Wed, 01/15/2014 - 15:03 | 4334759 maskone909
maskone909's picture

velocity of money is plunging.

quick, lets do more of the same shit CNTRL-P

only way to speed up m2 is to give money to the people.  they pretend they do not know this.  they would rather push society to the limits than give wealth to the citizens.

Wed, 01/15/2014 - 15:06 | 4334769 LawsofPhysics
LawsofPhysics's picture

Here is a novel idea, how about giving it to the responsible citizens, you those of us living within our means, paying off debt etc.

The reason we are here in the first place is because the system has been rewarding irresponsible behavior.  Just ask John Corzine...

Wed, 01/15/2014 - 15:13 | 4334810 maskone909
maskone909's picture

i like the sound of that!  maybe we can leave it up to the DHS to decide who is and isnt responsible.  we can force people to wear patches that have low credit scores.  maybe ship them off to camps to "work" off their debts.  novel idea indeed.

Wed, 01/15/2014 - 15:17 | 4334828 LawsofPhysics
LawsofPhysics's picture

That which cannot be sustained, won't be, no matter how much you cry and whine about it.  Don't know where you get "camps" from that post fucknut.

Wed, 01/15/2014 - 15:25 | 4334858 maskone909
maskone909's picture

fucknut? u mad bro?  come at me bro!

nobody is whining over here pal. 

sounds more like you are bitter because you slaved your ass to pay down some bullshit debts and now you want an award.  you are just a good house negro.  get this man a bean pie and a grape koolaid.  hes earned his house privaliges.

Wed, 01/15/2014 - 15:35 | 4334891 LawsofPhysics
LawsofPhysics's picture

LMFAO!  Don't worry about us, my nigga's get their shit done.  I have been long sharecropping for quite some time...

Wed, 01/15/2014 - 15:18 | 4334832 Herd Redirectio...
Herd Redirection Committee's picture

I figure DEBT JUBILEE will accomplish more.  Although then the highly leveraged cronies and governments will have their debts wiped as well, hopefully it would effectively reduce the oligarchy's power, and the size of the state.

Wed, 01/15/2014 - 15:28 | 4334867 donsluck
donsluck's picture

Debt jubilee, the Jewish tradition, is scheduled. If it happens organically (which is where we are now) it is highly destructive. All parties have to be fully aware of the jubilee and it's schedule to allow retirements of debts BEFORE the jubilee date.

Wed, 01/15/2014 - 15:33 | 4334885 Herd Redirectio...
Herd Redirection Committee's picture

Definitely, because how is business possible without TRUST?  And trust is about to be destroyed in epic fashion these next 20 years.

But hopefully when its all over, we can have a return to justice, and smaller governments(and not just replaced with 'a law unto themselves' Multinational corporations).

Wed, 01/15/2014 - 15:37 | 4334893 LawsofPhysics
LawsofPhysics's picture

Only wipe out a certain amount of debt.  Cronies have considerably moar debt than most...

Wed, 01/15/2014 - 15:08 | 4334788 maskone909
maskone909's picture

history will look back on this mess and see that all the money given to bank bailouts could have saved every last underwateer mortgage.  bot no more JPmorgan or GS?  oh the horror!?  what would we ever do!?!?

 

big shout out to paulson, geithner, and friends!

Wed, 01/15/2014 - 15:39 | 4334899 LawsofPhysics
LawsofPhysics's picture

+1 for calling out Hank "tanks in the streets" Paulson.

Wed, 01/15/2014 - 16:05 | 4334999 holgerdanske
holgerdanske's picture

they worry about deflation, because that would make the banks superflous for saving money. That means that you could stack your cash under the matress and not loose value.

And that would go against their unsatiable appetite for control, taxes and fiat fraud.

The system is going to be that you earn so much, we take that much, and you better spend the rest before it becomes worthless.

Ain't working with gold, and ain't working with deflation. Thus these are the arch enemies of the establishment.

 

All this from a synchronized swimmer that earns a tax free salary each month by far exceeding what normal people earn in a year. And all paid for by the taxpayer.

 

Ironic, and disgusting.

 

Wed, 01/15/2014 - 15:00 | 4334744 666
666's picture
  • *LAGARDE SAYS 'I'M AN ASSHOLE'
  • *LAGARDE URGES OFFICIALS TO `FUCK OFF AND DO AS I SAY'
  • *LAGARDE ORDERS FED TO PRINT MOAR
Wed, 01/15/2014 - 15:08 | 4334786 eclectic syncretist
eclectic syncretist's picture

*LAGARDE SAYS 'MY DICK IS BIGGER THAN YELLIN'S'

*LAGARDE SAYS 'US ACTING LIKE A WAYWARD CHILD'

Wed, 01/15/2014 - 15:00 | 4334745 Charles Nelson ...
Charles Nelson Reilly's picture

seriously.... is this woman fucking retarded?

Wed, 01/15/2014 - 15:12 | 4334804 Sudden Debt
Sudden Debt's picture

She is our economic captain...

http://www.youtube.com/watch?v=uSlXHkReTD0&sns=em

Wed, 01/15/2014 - 15:18 | 4334833 americanspirit
americanspirit's picture

Only with a bag over her face, please

Wed, 01/15/2014 - 14:54 | 4334706 101 years and c...
101 years and counting's picture

fuck you, you stupid orange bitch.

Wed, 01/15/2014 - 15:01 | 4334749 WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

Can't imagine what it would look like if LeCunt and Bohnner had a child.

Wed, 01/15/2014 - 15:07 | 4334777 101 years and c...
101 years and counting's picture

well, thats an easy one.

http://media.photobucket.com/user/chancemonky/media/oompa-loompa1.jpg.ht...[term]=oompa%20loompa&filters[primary]=images&filters[secondary]=videos&sort=1&o=1

Wed, 01/15/2014 - 14:54 | 4334708 tmosley
tmosley's picture

I guess you could say that it's all ogre.

Wed, 01/15/2014 - 14:55 | 4334714 Sudden Debt
Sudden Debt's picture

Yep.... Dow 16500 here we come and we're in the midsr of a global deflation spiral...

The markets are the ture indicators of inflation.

Wed, 01/15/2014 - 14:57 | 4334715 AccreditedEYE
AccreditedEYE's picture

When your goal is to destroy national identity, sovereignty, and currency and replace it with one overarching world government that does away with individual decision, THIS is the kind of position that you take. (One that would further undermine individual sovereignty)

 

Wed, 01/15/2014 - 15:07 | 4334775 Sudden Debt
Sudden Debt's picture

Yes... we are all Belgians now....

you may start to sing the national anthem....

Wed, 01/15/2014 - 14:57 | 4334716 blabam
blabam's picture

Le print s'il vous plait.

Wed, 01/15/2014 - 14:57 | 4334717 Cognitive Dissonance
Cognitive Dissonance's picture

*LAGARDE SAYS EURO-AREA MONETARY POLICY `COULD STILL DO MORE'

At this point it isn't a question of doing moar. You can always do moar. The question is the effectiveness of doing moar.

<Central bankers have never met a moar they didn't like.....a lot.>

Wed, 01/15/2014 - 15:39 | 4334902 NoDebt
NoDebt's picture

Do you piss in the punchbowl at EVERY party you go to?

Wed, 01/15/2014 - 16:22 | 4335077 Cognitive Dissonance
Cognitive Dissonance's picture

Mrs. Cog says I do. Does that count?  :)

Wed, 01/15/2014 - 15:43 | 4334917 Herd Redirectio...
Herd Redirection Committee's picture

The logical fallacies just abound, with her statements.  Its like logic and causality are completely besides the point.

Wed, 01/15/2014 - 14:56 | 4334719 Grande Tetons
Grande Tetons's picture

This is beyond kicking the can...the is becoming launching the can into the far depths of the universe. 

Wed, 01/15/2014 - 15:02 | 4334753 alangreedspank
alangreedspank's picture

There is no can, no down, no road, no universe, all is well and that is all.

Wed, 01/15/2014 - 14:58 | 4334728 Dr. Engali
Dr. Engali's picture

Print.....PRINT....PRINT moar! Screamed the orange trannie from the top of his lungs.

Wed, 01/15/2014 - 14:58 | 4334730 Sudden Debt
Sudden Debt's picture

an orderly budget process, including by promptly removing the debt ceiling threat

That's like saying : PLEASE GO TO THE LOUNGE WHILE THE TITANIC IS LEVELING OUT WITH THE WAVES IN A ORDERLY FASHION!

Wed, 01/15/2014 - 14:59 | 4334733 LawsofPhysics
LawsofPhysics's picture

More mis-direction by the dying wizards...

In the history of earth, no society/currency has ever collapsed/died because their purchasing power became too strong.

Am I to believe that the cost of living has decreased for the average person living in the E.Z.?

I think not...

Wed, 01/15/2014 - 14:59 | 4334734 dick cheneys ghost
dick cheneys ghost's picture

Mr Lagarde: TEAR DOWN THIS BANK

Wed, 01/15/2014 - 14:59 | 4334739 Sparky_ZA
Sparky_ZA's picture

I am confused.

The IMF report recommends a "once off" tax to eliminate debt....

And

Create more debt.

Once off tax is deflationary but deflation is bad?

Wed, 01/15/2014 - 15:00 | 4334747 alangreedspank
alangreedspank's picture

Depends if they plan to repay a debt with it. If so, it is deflationary, if not it's just shifting in the state's bossom. I suspect the latter.

Wed, 01/15/2014 - 15:00 | 4334740 alangreedspank
alangreedspank's picture

If we are to believe that we're in a strong recovery, then, there are NO threat of deflation. Deflation would only happen by massive credit defaults. If the economy is on a strong, sane path, why would people default on their loans then ?

They can't have it both ways. If they publicly say they are scared of deflation, they are publicly saying the economy is out of whack and a complete bubble in in itself.

Wed, 01/15/2014 - 15:01 | 4334748 pods
pods's picture

Why not have QE be like 200 billion a month?  AND have the Fed.gov balance the budget.
Then we will see them push that string. Go ahead moneychangers, ya feel lucky?

As for having the Fed.gov accomodate by deficit spending more of my kid's labor, DIAF you fucking good for nothing moneychangers. I cannot wait until your rotting heads adorn poles.

Somone outta walk up and bitchslap that little orange bitch.  Pretending she is fucking doing us a favor by enslaving our children.

No punishment is too bad for these people.

pods

Wed, 01/15/2014 - 15:21 | 4334843 americanspirit
americanspirit's picture

Pods - "Little Orange Bitch". That is by far the best ever.

Wed, 01/15/2014 - 15:02 | 4334756 yogibear
yogibear's picture

Fail already La disregard, you media whore.France looks like it's dying.

Wed, 01/15/2014 - 15:04 | 4334761 bagehot99
bagehot99's picture

It's not working, it's not working!!!!

Keep doing it!!

Wed, 01/15/2014 - 15:04 | 4334763 timbo_em
timbo_em's picture

I'm not sure, but when Joe Sixpack pays 100 percent of his income to Blackrock, TPTB migth give in. At least until then, the wealth transfer continues.

Wed, 01/15/2014 - 15:05 | 4334768 Ms. Erable
Ms. Erable's picture

Janet, you ignorant slut. Shove your printing press up your ass sideways, you cucking funt.

(h/t Chevy Chse)

Wed, 01/15/2014 - 15:07 | 4334772 NaiLib
NaiLib's picture

Have only a few word for Lagarde: Totally Insane!

 

Brace yourself Europe - Lagarde is running for the executive offie of EU. Taxes AND printing.

Wed, 01/15/2014 - 15:07 | 4334778 Critical Path
Critical Path's picture

The psuedo global economic recover double bind: Things are so great in the economcy (see housing, retail, etc.) we need to re-extend the over-extended unemployment benefits in the face of so called falling unemployment and continue easing in the face of record(er) asset price appreciation. This economy is so great it could fold like a cheap suit at a moments notice?  Me thinks someone here is full of shit, and I have my suspicions.

Wed, 01/15/2014 - 15:22 | 4334850 disabledvet
disabledvet's picture

the German economy is now slowing dramatically...which gives new meaning to the term "productive capacity coming on line." Japan has already imploded...Aussie dollar, CAD...CRUSHED. Columbia is now "hoarding coal" because it's freezing cold down there. And "Tesla will simply send the upgrade to the entire Army, Navy, Air Force and Marines via a 25 dollar part and a software patch for free." There..."that just saved 100 billion dollars." Now just don't fire your guns and we'll make another billion rounds of ammunition to keep copper prices from collapsing to a buck a pound...if we can.

Wed, 01/15/2014 - 15:08 | 4334783 ebworthen
ebworthen's picture

I don't suppose she's offering up any of her own savings for this QE, is she?

Wed, 01/15/2014 - 15:09 | 4334791 chaartist
chaartist's picture

IMF owned by FED says to FED ...amazing structure at play

Wed, 01/15/2014 - 15:10 | 4334798 Central Wanker
Central Wanker's picture

Ms Lagarde, we gold owners salute you.

Wed, 01/15/2014 - 15:10 | 4334799 frankTHE COIN
frankTHE COIN's picture

The HunchBack of Notre Dame is All Over LaGarde.

Wed, 01/15/2014 - 15:11 | 4334800 adonisdemilo
adonisdemilo's picture

So, who gets to suffer the most from deflation.

THE FUCKING BANKERS

Ergo: deflation must be good.

Wed, 01/15/2014 - 15:11 | 4334801 ptoemmes
ptoemmes's picture

On a personal note....I could use a little DEFLATION about now.

Wed, 01/15/2014 - 15:12 | 4334806 ghostzapper
ghostzapper's picture

Let's take a looksie:

- print, print, and print until nobody even acknowledges the existence of fiat in an attempt to kick the can as long as possible

- the U.S. does not have that gold in Fort Knox nor do they have the gold in NYC they are "holding" for people like Germany

- watch China "stack" acting as if you think its relevant while all the while not attempting to keep pace

- watch China try to at some point launch its "global reserve currency" backed by physical gold it has been accumulating

- allow free market forces (don't promote it but don't stop it either) to elevate an alternative form of currency to the forefront

- watch as nobody on the planet embraces China's plan because nobody on the planet trusts anything from China

- move forward further allowing free market forces to establish a leading alternative form of currency along with its associated benefits

U.S. tries to peacefully find a way out of this mess.  China holds the bag on a shitload of phyzz while nobody embraces their plan to make the Yuan the global reserve currency.  U.S. wins.  chiona loses.

Hmmmmm.  Stranger things have happened.

Cue the chorus of "you're a fuckin idiot" and "I'm smarter than you because I've been at ZH and I have a cutesie MBA" calls.  

 

Wed, 01/15/2014 - 15:29 | 4334870 disabledvet
disabledvet's picture

we have not one, not two, not three but four companies currently "blasting off" to get every scrap of metal floating around "out there." Do you honestly think every country on the Planet that can do this isn't? The US has a 2 inch by 2 inch cube that can power a satellite for 80 years. the ion thrusters have been around since the 1950's. And we launched a spacecraft "for fun" that can and is doing 50,000 mph. "25,000 is the norm" in case you're wondering...and that speed record was set 7 years ago. The President has already said "another 10 years for the International Space Station." The new thrusters can keep that thing up there for another 100. And then there's this guy: http://www.bigelowaerospace.com/ hmmm. "25 billion or 2.5 million. You be the judge."

Wed, 01/15/2014 - 15:25 | 4334816 Yen Cross
Yen Cross's picture

 

  *LAGARDE SAYS RISING RISK OF DEFLATION MUST BE FOUGHT DECISIVELY

 

La Garde's comment about deflation make about much sense as trying to go UP 'Niagra Falls' in a barrel.

 Jim O’Neill: Global income redistribution could be coming

Wed, 01/15/2014 - 16:08 | 4335020 frank H
frank H's picture

exacly...this fear of deflation is total nonsense!

http://www.mises.org/daily/6459/Whats-So-Scary-About-Deflation

Wed, 01/15/2014 - 15:16 | 4334824 Inthemix96
Inthemix96's picture

Not thought about paying a little towards it lagarde you orange skinned ugly cunt?

Seeing as you and your mates at the IMF pay no tax, period?  Help out us little fuckers at the bottom for a change you un-fuckable twat?

My 24oz Stanley 'Steel Master' would love a word with you, filthy fucking nation wrecking swine what you are.....

Its ticking away leather face, day by day, bit by bit, the people are waking, enjoy it while it lasts.....

:-)

Wed, 01/15/2014 - 15:56 | 4334963 Winston of Oceania
Winston of Oceania's picture

+1 for one of my fovorite terms "twat", no other word fits at times.

Wed, 01/15/2014 - 15:27 | 4334862 Dr. Engali
Dr. Engali's picture

"an orderly budget process, including by promptly removing the debt ceiling threat"

 

WTF kind of nonsense is that? I swear these people are fucking retarded. The larger problem is there is an even larger mass of ignorant sheep who would buy this double speak if they didn't have their head buried in their iGadgets.

Wed, 01/15/2014 - 15:47 | 4334927 frank H
frank H's picture

She makes what....500,000$ a year in salary and is is a totally clueless economist! (I had a better word starting with B)

No one should be afraind of deflation. there is NO good theoretical reason....everything that is siad is nonsense

Wed, 01/15/2014 - 16:00 | 4334979 lasvegaspersona
lasvegaspersona's picture

Today's S&P 500 clearly shows that we will go the route of hyperinflation. Deflation can only happen iif the world want's it to happen....which it never does. In a world of all fiat currencies we shall see currency created to ease all pain.

Wed, 01/15/2014 - 16:29 | 4335112 booboo
booboo's picture

Right, banks what their assets paid off with a weeks salary from some street sweeper they thought was in their clutches, (hyperinflation requires a commensurate hyperinflated wage increase and muni's cannot hyper raise taxes) or risk being burned at the stake. Coordinated printing only ends in coordinated loss of trust in all governments. The sooner the better since people have been worshiping at the alter of Civic Religion for way too long, it's about time they were slapped into reality by a full on frontal round house kick to the melon. 

Wed, 01/15/2014 - 16:35 | 4335134 perelmanfan
perelmanfan's picture

Deflation has never killed a sovereign entity. Deflation just purges malinvestment and ultimately strengthens the economic base. Inflation has killed hundreds of countries. Therefore - deflation must be vanquished.

Wed, 01/15/2014 - 16:45 | 4335160 all-priced-in
all-priced-in's picture

So the Obama administration and most of congress  is concerned about increases in health care, education, food, energy and housing costs and wants to push policies that lower these costs  , they (Obama & the democrats anyway) also want to raise the minimum wage.

The FED wants more inflation - which would mean increases in health care, education, food, energy and housing prices and a decrease in real wages.

Are things really this fucked up - or am I missing something?

 

 

 

 

 

 

Wed, 01/15/2014 - 17:37 | 4335340 JailBanksters
JailBanksters's picture

Wasn't this witch recommending the Club Fed stop printing money just the other week, now it's DON'T stop printing money.

Like many others, I believe the Club Fed will have increase the free money supply by 50% to 100% or it's a house of cards gone bad.

Wed, 01/15/2014 - 19:12 | 4335631 zaphod42
zaphod42's picture

OMG.  When every nation seems to be creating fiat money as fast as they can and we have inflation, it can only be because the people who spend the money are not getting the new stuff.  The only inflation is in the stock markets! 

Can you say, "Bubble?" 

Craig

Wed, 01/15/2014 - 21:04 | 4336114 PeaBird
PeaBird's picture

The IMF wants to confiscate savings from bank accounts. If that action goes ahead as planned, it will cause deflation for the "99%" that they steal that money from.

Yet, they are worried about deflation?

What hypotritical, globalist institution complains about deflation, yet, wants to go about and action the very things that will cause deflation? A very insane one, it seems.

Just add this, to the pile as just another piece of evidence of insanity from our beloved globalist institutions.

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