This page has been archived and commenting is disabled.

Christine Lagarde Is Clueless: 70 Words Of Pure Keynesian Claptrap

Tyler Durden's picture




 

Submitted by David Stockman via Contra Corner blog,

The world’s official economic institutions are run by people who believe in monetary fairy tales. The 70 words of wisdom below from IMF head Christine Lagarde are par for the course. She asserts that a new jabberwocky expression called “low-flation” is the main obstacle to higher economic growth in Europe and the DM areas generally and that it can be cured by more central bank money printing.

The first obstacle is… the emerging risk of what I call “low-flation,” particularly in the Euro Area. A potentially prolonged period of low inflation can suppress demand and output—and suppress growth and jobs. More monetary easing, including through unconventional measures, is needed in the Euro Area to raise the prospects of achieving the ECB’s price stability objective. The Bank of Japan also should persist with its quantitative easing policy.

Now there is not a shred of credible evidence that prolonged low CPI inflation causes workers to produce less, businesses to invest less or entrepreneurs to invent less. Since these are the fundamental ingredients of economic growth on the free market, the question recurs as to why Keynesian Kool-Aid drinkers like Lagarde (and the huge staff of IMF economists she lip-syncs) apparently believe that eroding the value of savings by say only 1% per year vs. 2% will “suppress demand and output”.

Obviously, even they can’t believe that falling prices alone cause “demand” to falter. After all, the price of flat-screen TVs, iPads and iPhones have plunged during the past several years, but demand has soared. During the past 27 months, for example, Apple’s revenues have surged from $29 billion to $58 billion per quarter.

And its not just tech gadgetry, either. Wal-Mart has been driving down the price of furniture, toasters and house-paint for years now, but it has never once complained that its revenue growth–which has been relentless for decades—-has been impaired because its customers are holding-off for even lower everyday prices next period.

Indeed, at the product and commodity level the “low-flation” notion is positively ridiculous. US auto sales of 17 million annually in 2005 plummeted to about 11 million by 2009, but that was due to falling incomes and impaired credit status among marginal car buyers. During that period auto prices were not falling but steadily rising.

In general, the old rules have not been repealed: demand flows from income; income follows production; rising prices except among the most inelastic commodities tend to discourage demand; and falling prices tend to stimulate it.

Only in the Keynesian world of regression model aggregates do we get a polar-reversal. There, baskets of prices (i.e. price indices like the CPI) which are rising somewhat slower than trend allegedly cause that mysterious ether called “aggregate demand” to falter. Needless to say, the professors have never identified the transmission mechanism whereby the consumer’s logical behavior to buy more goods with falling prices at the micro-level— causes the sum of all consumers to defer spending in the face of weakening inflation at the aggregate level for the entire basket of goods and services.

No time needs be spent on puzzling about this conundrum because the missing link is easy to see. The mysterious Keynesian ether is simply credit expansion in excess of income growth. That happened for about four decades prior to the financial crisis, and it did goose GDP as measured by the ”spending and income” accounts published by the government’s statistical mills.

Designed by primitive Keynesians in the 1930s and 1940s these ledgers were a marvel of aggregation, cross-walks and accounting identities, but, alas, they suffered from a irremediable flaw. Namely, the GDP accounts contained no balance sheets; it was all about flows which meant that there was no history, and that each quarterly accounting period was a fresh start.

As it happened, the US economy fresh-started its way straight up a parabolic debt-to-income curve after the 1970s. The aggregate credit market debt-to-national income ratio had been stable at 1.5X for nearly a century, but climbed nearly continuously to 3.5X by the eve of the financial crisis in late 2007. As I have demonstrated elsewhere, this extra two turns of debt amounts to about $30 trillion of incremental debt burden.

In the household sector, the debt ratchet was equally dramatic. With each new business cycle, household debt climbed to a new plateau. It ultimately rose from 80% of wage and salary income in 1970 to a peak of 210 percent in 2007—before falling back slightly to about 180% at present owing to the  liquidation of unsustainable or defaulted mortgage and credit card debt.

The short of it is that we have hit peak debt, and the one-time ratchet to spending based on rising debt ratios is over. The Keynesians never saw this coming because their DSGE models never saw a balance sheet—let alone the de facto LBO which occurred on the nation’s aggregate balance sheet over the past 40 years.

And so they persist in insisting that more of the square peg of debt be pounded into the fully saturated round hole of income. That’s the essence of the mad money printing being undertaken by all of the world’s major central banks.

Keynesian policy-makers at these central banks labor to once again levitate demand in the time-worn manner, but fail to see that the credit transmission channel of monetary policy was a one-time expedient, and that it is now exhausted and done. After nearly five years of failing to achieve “escape velocity”, therefore, they now desperately need an explanation for that failure, and have simply invented one: “low-flation”.

It goes without saying that this particular variant of the Keynesian catechism is especially dangerous. It gives the central banks a license to define and redefine “optimum” inflation—a figure that is already creeping up from 2% toward 3% and even 4% among some of the more aggressive doves.  Since the phony inflation numbers published by the government mills–riddled as they are with imputed rents, geometric means and hedonic adjustments— will always fall short of these arbitrary inflation targets, the central bankers have essentially invented a pretext for endless monetary expansion.

Unfortunately, that means that the Wall Street finance channel will be injected with ever more juice for the carry trades until the resulting financial bubbles reach their natural asymptote and come crashing down once again. The scary thing is that the world is being run by central bank, IMF and national government apparatchiks, who, like Christine Lagarde, are clueless about the fact that momentary doctrines such as “low-flation” are simply made-up claptrap.

Too be sure, the Keynesian recipe for the debt elixir was not always this specious. Once upon a time this Keynesian RX was at least quasi-honest because the debt magic was held to operate mainly through fiscal policy. According to the great thinker, the masses had an unfortunate habit of saving too much—-so the solution was for the fiscal authorities to sop-up these fetid pools and cycle them back into the economy through government deficits.

In turn, these fiscal booster shots in the form of transfer payments, public works, war equipment and even holes dug and refilled would generate fiscal multipliers—that is to say, money borrowed from society’s stagnant savings pool and spent by recipients of government outlays would become new income to shovel suppliers and food vendors, who would re-spend their proceeds and fuel a virtuous cycle of growth.

Moreover, this type of prosperity from the issuance of government bonds and bills was to be pursued aggressively until the macro-economy had absorbed every single idle worker and capital resource, and had thereby achieved a Keynesian nirvana called “full employment”. Only then was the borrowing to stop, allowing the budget to swing into full-employment surplus. At that point, the macro-economic bathtub would be full to the brim and the elixir of debt would have done its job.

It didn’t work out that way. Johnson’s “guns and butter” fiscal policies caused the macroeconomic bathtub to flood, unleashing a decade of the Great Inflation. Unemployment dropped below 4% for 40 months running in the late 1960s, giving rise to virulent wage pressures that fueled an inflationary cost spiral.

Likewise, the excess domestic demand feed by the Keynesian doctors of the Kennedy-Johnson White House spilled over into the international market, inducing a massive inflow of imports and current account deficits. Soon there was a monetary crisis. Nixon then pulled the plug on the gold-backed money that J.M. Keynes had designed at Bretton Woods, thereby permitting Milton Friedman’s monetary wise men to run the nation’s central bank by the seat of their pants.

In time, the excess savings hobgoblin disappeared–with the US household savings rate falling from 11 percent to barely 3%, but that didn’t matter. The Keynesian baton had already been passed to the Greenspan era central bankers. As suggested above, the latter proceeded to fuel massive credit-driven expansion until balance sheets were fully exhausted.

At the end of the day, therefore, the grand Keynesian idea of the debt elixir has now been reduced to mindless money printing by the central banks. And the myth of excess savings and under-consumption has been reduced to something even worse—bureaucratic slobbering about “low-flation”.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 04/04/2014 - 22:06 | 4627192 Jlasoon
Jlasoon's picture

Orange skin making tanning beds for everyone!!!!!!!!!

Fri, 04/04/2014 - 22:15 | 4627201 Looney
Looney's picture

70 words of CUNTtrap ;-)

A potentially prolonged period of low inflation can suppress demand and output... so, according to the Orange Tranny, a potentially prolonged perion of HIGH INFLATION can unleash demand and output???

Whadaphuck?

Looney

Fri, 04/04/2014 - 22:17 | 4627222 y3maxx
y3maxx's picture

....Mdme La Garde..."Je suis Tanning myself "orange" toute suite, so's I can move to Bejing and mix right in."

Fri, 04/04/2014 - 22:21 | 4627229 Looney
Looney's picture

... La Garde...tanning myself "orange"...

Call me a bigot, but I hate ORANGE PEOPLE.  ;-)

Looney

Fri, 04/04/2014 - 23:07 | 4627326 RideTheWalrus
RideTheWalrus's picture

The Snozzwanglers are a species that are mentioned in Charlie and the Chocolate Factory. It is one of the animals that live in Loompa-Land and prey on the Oompa-Loompas as mentioned by Willy Wonka.

Fri, 04/04/2014 - 23:30 | 4627357 Anusocracy
Anusocracy's picture

Lagarde has the economic mindset of a forager.

As do all Keynesians.

Fri, 04/04/2014 - 23:55 | 4627397 El Oregonian
El Oregonian's picture

How much are they paying Ms. Marmalade?

Sat, 04/05/2014 - 00:15 | 4627422 Dollarmedes
Dollarmedes's picture

"...HIGH INFLATION can unleash demand and output..."

Yeah, that's why Venezuela's economy is booming right now. Or, that might be the Molotov cocktails.

Sat, 04/05/2014 - 00:39 | 4627451 wintermute
wintermute's picture

"professors have never identified the transmission mechanism whereby the consumer’s logical behavior to buy more goods with falling prices at the micro-level— causes the sum of all consumers to defer spending in the face of weakening inflation at the aggregate level for the entire basket of goods and services"

These professors earn their salaries in an environment where the above must be believed, in order that it is beneficial that government debt is eroded by inflation.

 

Sat, 04/05/2014 - 00:40 | 4627455 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

It appears someone at the CIA had a conscience afterall...
http://freebeacon.com/national-security/cia-official-dies-in-apparent-su...

Sat, 04/05/2014 - 01:42 | 4627526 August
August's picture

Another of these suicidal plunges from the fourth or fifth floor.  Must be afraid of heights.

Definitely don't go from below the third, guys.

Sat, 04/05/2014 - 02:07 | 4627547 RideTheWalrus
RideTheWalrus's picture

It's about time Obama does something about gravity. It's killing more people than guns so far this year!

 

Sat, 04/05/2014 - 04:23 | 4627643 The Alarmist
The Alarmist's picture

After reading that, I had to do a double-take as I was not sure which finger she was giving us.

Sat, 04/05/2014 - 06:06 | 4627678 economics9698
economics9698's picture

"A potentially prolonged period of low inflation can suppress demand and output—and suppress growth and jobs."

Fucking retarded idiot.  This is what happens when you never work a day at a real job in your life. 

Sat, 04/05/2014 - 06:55 | 4627708 negative rates
negative rates's picture

Is she about to put a gun to her head, cause there seems to be a kool-aid shortage in Congress and if there is anything that will start WW 3, it's a kool-aid shortage in Congress.

Sat, 04/05/2014 - 07:49 | 4627747 GetZeeGold
GetZeeGold's picture

 

 

Many people don't know that Christine Lagarde and John Boehner are related.

 

Of course many don't know that Oompa Loompas are real.

 

I can assure you...they are.

Sat, 04/05/2014 - 13:42 | 4628221 SafelyGraze
SafelyGraze's picture

what, exactly, is a 'special drawing right'?

I'm glad you asked.

various member-countries pledge to us some gold they don't have. with those pledges in hand, we then issue SDR's to the member-countries on a pro-rata basis. 

more gold pledged, more SDRs issued.

the SDR is not an obligation of our organization. it is a made-up thing that we are the sole issuer of.

in order to join the club, a country binds itself to the rules of our game. they will convert ("launder") our from-nothing SDRs into their own units of currency. then they will pay back our SDR thing plus interest.

how is it possible for all the countries to pay back the SDRs we issue them when all the SDRs are just the made-up stuff we created in the first place?

that is their problem! ha ha ha!

how is it possible for them to pay us back additional SDRs as interest?

ha ha ha again!

it isn't possible unless we issue *more* SDRs so that they can pay back the interest on the previous round(s) of our SDR issuance!

if you are a poor country and we "bail you out" by loaning you lots of SDRs, you can now enjoy the super-fun game of musical chairs, trying to find SDRs from the countries with strong economies who already must repay their SDRs plus interest to us.

Good luck with that!

I *love* this job!

hugs,
Chrissie  <3

 

 

Sat, 04/05/2014 - 01:13 | 4627497 MontgomeryScott
MontgomeryScott's picture

The WORST thingie is 'LOW-FLATION'.

The low-hanging fruit basket of goods and services, if not properly inflated, can lead to lagging interest earnings by those who create 'money' and stimulate the macro-economies around the world. Without stimulus packages, the entire system that we have become accustomed to and accept now as 'normal' might grind to a halt, and the losses to high-end retailers of essential goods and services (like Perrier and Lamborghini) might cease to exist. This outcome is the worst of all worlds, as those who feed directly (like trophy wives and hedge-fund groups) may actually have to be forced to suffer difficult choices as they are put in to the awkward position of having to settle for less-expensive items (like a mere 250-foot yacht, instead of the 350-foot one that they have set their sights on). The 'trickle-down' effects will be devastating as well. Welfare 'entitlement' payments might actually be suspended, and people might be forced to actually find JOBS and WORK to stay alive.

...

Sat, 04/05/2014 - 02:26 | 4627551 zhandax
zhandax's picture

You guys are misinterpreting central banker-speak.  Low-flation means an insufficient quantity of credit-driven asset price bubbles.  They think unintended consequences means the press shows up afterward.

Sat, 04/05/2014 - 05:21 | 4627663 Squid-puppets a...
Squid-puppets a-go-go's picture

low-flation also means anyone who (still) labours under the illusion that the CB's have 'price stability' as a genuine interest is a total dolt

But also, dont be fooled into thinking the push for inflation is to pay back Govt debt. How dumb would that be? "We create govt debt to cause inflation to get rid of govt debt" - no one is that absurdly stupid. No, the inflation is and has been since 2008 the life raft for the oligarchy's assets which to this day are still swimming ferociously against the pull of the shadow banking/derivative whirlpool

Sat, 04/05/2014 - 06:17 | 4627669 zhandax
zhandax's picture

They are that stupid, because they assume the fed has their back, and the fed's actions will work with no unintended consequences.....

That, to the logical thinker, is where the argument breaks down.  Never assume malfeasance where sloth could apply.

Sat, 04/05/2014 - 06:26 | 4627688 Wahooo
Wahooo's picture

Is she fucking serious? Half the people WOULD defer spending if they didn't need food, water, fuel, clothing, etc. each and every day in aggregate. The other half are members of the FSA and they don't care one way or another.

Sat, 04/05/2014 - 08:18 | 4627760 The Wizard
The Wizard's picture

Where the exact opposite is true, government debt instruments result in greater inflation.

Sat, 04/05/2014 - 05:07 | 4627656 theprofromdover
theprofromdover's picture

"...HIGH INFLATION can unleash demand and output *..."

Absolutely correct Mme Lagarde, because if you don't spend it immediately, your money is worthless.

And you think that's a way to build a sustainable economic environment?

* you may increase production if you bought the raw materials cheap, but you will hold back your output until the prices have risen.

Who are these people?

Sat, 04/05/2014 - 06:43 | 4627698 Singelguy
Singelguy's picture

She officially earns $550,000 a year TAX FREE! In pre tax dollars in France that would be about $1.2 million. I am sure she gets a healthy expense account and other "perks" when no one is looking.

Sat, 04/05/2014 - 17:18 | 4628618 Sirius Wonderblast
Sirius Wonderblast's picture

Bear in mind she pays no tax.

Sat, 04/05/2014 - 17:22 | 4628621 Sirius Wonderblast
Sirius Wonderblast's picture

sorry - accidental double post.

Fri, 04/04/2014 - 23:53 | 4627393 Harbanger
Harbanger's picture

In keynesia there exists the LaBoehnerine, it's a pink fruit resulting from a cross between the French and American Orange.

Fri, 04/04/2014 - 22:51 | 4627272 Cthonic
Cthonic's picture

 "mix right in"

With what, the chow mein? Orange chicken? Chop chop!

Sat, 04/05/2014 - 02:26 | 4627563 Archduke
Archduke's picture

wtf wrote this piece of drivel?

stockman needs to learn to read.

nowhere does it mention falling prices.
in fact it's the opposite: low inflation is
still price increase. I don't mind IMF
bashing, but get your tennets right.

Sat, 04/05/2014 - 02:57 | 4627580 mccvilb
mccvilb's picture

Thankfully Hillary was on the job doing her part: http://freebeacon.com/national-security/state-department-misplaced-6b-un...

Sat, 04/05/2014 - 05:23 | 4627664 Squid-puppets a...
Squid-puppets a-go-go's picture

c'mon, man

low flation is code for the DEFLATION currrently occuring, code required because they dare not speak its name

Sat, 04/05/2014 - 09:39 | 4627839 drendebe10
drendebe10's picture

"There ain't nuthin uglier than an old white woman. " Fred Sanford 

Fri, 04/04/2014 - 22:08 | 4627193 Spitzer
Spitzer's picture

Frog..

How come nobody calls French people frogs anymore ?

Fri, 04/04/2014 - 22:34 | 4627264 damicol
damicol's picture

This bitch is not a frog.

Even frogs have some charm

Fri, 04/04/2014 - 22:40 | 4627275 wee-weed up
wee-weed up's picture

She's more of a lizard, or a snake...

Can't you see that forked tongue flicking in and out?

Sat, 04/05/2014 - 00:18 | 4627427 Skateboarder
Skateboarder's picture

She's twice the lizard DSK ever was.

Sat, 04/05/2014 - 00:53 | 4627474 wee-weed up
wee-weed up's picture

She probably has a bigger dick too!

Sat, 04/05/2014 - 02:29 | 4627564 zhandax
zhandax's picture

Frogs don't have scales.

Fri, 04/04/2014 - 23:27 | 4627353 813kml
813kml's picture

I dare you to kiss her and see what happens.

I'll take the over on the Prince of Death appearing rather than Prince Charming.

Sat, 04/05/2014 - 06:02 | 4627677 Rakshas
Rakshas's picture

Kiss..... no ...... but...... ummmm.... teabagging a reptilian ditchpig may have it's charms ..........

Sat, 04/05/2014 - 07:04 | 4627715 Zwelgje
Zwelgje's picture

Thanks for the wonderful graphics you assholes.

Fri, 04/04/2014 - 23:37 | 4627366 Anusocracy
Anusocracy's picture

According to the National Lampoon's Tree of Mankind, the French degenerated from the lowest evolutionary branch of Man:

the Small Appliances and Toasters branch.

Fri, 04/04/2014 - 22:07 | 4627194 william114085
william114085's picture

hook nosed zionist khunt

Fri, 04/04/2014 - 22:19 | 4627223 chirobliss
chirobliss's picture

Racist misogynist prick.

Fri, 04/04/2014 - 22:35 | 4627269 damicol
damicol's picture

lefty liberal cocksucker

Fri, 04/04/2014 - 23:47 | 4627379 Anusocracy
Anusocracy's picture

william 114085 is just differently opinioned.

Adults can live with it.

Sat, 04/05/2014 - 00:09 | 4627410 TheReplacement
TheReplacement's picture

The same can be said of chirobliss, no?

Sat, 04/05/2014 - 15:09 | 4628401 Anusocracy
Anusocracy's picture

Yup.

Fri, 04/04/2014 - 22:39 | 4627274 Charles Nelson ...
Charles Nelson Reilly's picture

Ooooohhhh, oooooohhhh look at me, I'm chirobliss and I get offended by words and feel threatened by strong language.

Fuck you, and fuck that globalist cunt pig

Fri, 04/04/2014 - 22:54 | 4627302 chirobliss
chirobliss's picture

Ooh ooh I'm Charles the cock-sucking moronic dipshit who thinks he knows about how the world should be run, but mostly just likes to take it up his syphillitic arse.

Strong enough language you fucking son of a nazi-fucking whore!

Does that give you a better hard-on you idiotic arse wipe.

Fri, 04/04/2014 - 23:08 | 4627330 chirobliss
chirobliss's picture

...of course for all my lefty friends... not that there's anything wrong with that.

Sat, 04/05/2014 - 00:31 | 4627447 Jlasoon
Jlasoon's picture

Go play with the orange "poon".

Sat, 04/05/2014 - 03:30 | 4627616 A Nanny Moose
A Nanny Moose's picture

Is that the source of Tang?

Fri, 04/04/2014 - 22:56 | 4627303 BigJim
BigJim's picture

'zionist' isn't a race, silly billy.

Sat, 04/05/2014 - 00:11 | 4627416 TheReplacement
TheReplacement's picture

It certainly implies a particular race/religion as a prerequisite.  Better to call them globalists.  If the "zionists" were the only ones punished then a helluva lot of baddies will get off unscathed.

Fri, 04/04/2014 - 23:34 | 4627362 DIgnified
DIgnified's picture

You hit most of the leftist-buzzwords.  Good attempt. 

Sat, 04/05/2014 - 01:20 | 4627506 MontgomeryScott
MontgomeryScott's picture

IT forgot a few.

HOMOPHOBIC, ANTI-INCLUSIONARY, APARTEID, SEPARATIST, (-)WING, 'NUT-JOB', etcetera.

I was waiting for the classic 'ANTI-SEMITIC', there, but I guess this is too 'RADICAL' for even the commiesymplants.

Sat, 04/05/2014 - 01:47 | 4627532 chirobliss
chirobliss's picture

I did use the term nazi-fucker a bit later, but I generally prefer subtlety to a sledgehammer.

I guess subtlety never really carries it with knuckle-dragging, homophobic, apartheidist, right-wing, anti-semitic nutjobs ;-)

I'll try to keep it in mind for future zingers... so thanks!

Sat, 04/05/2014 - 02:20 | 4627554 MontgomeryScott
MontgomeryScott's picture

I KNEW there was one I forgot!

'KNUCKLE-DRAGGER'! It kind of envokes the image of an ape, a 'sub-human', who hasn't embraced the whole realm of 'thought' (as PROSCRIBED).

Damn, you're SO smart!

 

Sat, 04/05/2014 - 02:36 | 4627565 chirobliss
chirobliss's picture

You are so right-because calling a woman a hook-nosed cunt is just so totally unproscriptive, and accomodative of multiple viewpoints that you elevated personages of the right who fill zerohedge with relentless and unsubtle bullying are so generously fond of.

No thought is ever proscribed on ZH is it! The commentators all encourage the expression of multiple points of view and there is no groupthink. That's what we are most proud of!

Sat, 04/05/2014 - 03:01 | 4627585 mccvilb
mccvilb's picture

Well with that said, I'd hit it.

Sat, 04/05/2014 - 04:13 | 4627634 UselessEater
UselessEater's picture

blah... tell it to the victums of IMF and Legarde cabal policies, not to those expressing distaste and anger 'freely'

OMG I forgot nothing is "freely"

the UN human rights care about speech vs national soci-econonmic freedom of the sort that leads to the improverishment of all sexes/orientations/faiths/kiddyfreakslovers/Co2breathers/hominds/More-autism-vaccination-deaths/more toxic smart meters/more toxic everything ????

but be nice and polite whilst all suffers, is crippled and dies around you.

Sorry my bad.

Fri, 04/04/2014 - 22:10 | 4627205 asteroids
asteroids's picture

These morons live in a universe of open-loop money flow. If you need more, print more and jam it into the system. But, in the real universe, you can't cheat. Entropy eventually catches up with you.

Sat, 04/05/2014 - 05:09 | 4627658 mrpxsytin
mrpxsytin's picture

You nailed it. And this is why I am arguing against the use of violence to fight this. You don't have to fight a flawed system. Entropy is constantly doing the fighting for you, it tirelessly works away at the system's flaws until that system unravels and dies. 

The best thing you can be doing is fighting against the effects of entropy that threaten to unravel yourselves. This can be achieved through ridding onself of ignorance. Just shoring up your own defenses is a full time job and will require immense effort. Especially as entropy takes down the system around you. If you have anything left over after that then help your family and friends. 

 

 

Sat, 04/05/2014 - 13:18 | 4628171 mccvilb
mccvilb's picture

Ah, entropy, that great leveler.

Sat, 04/05/2014 - 15:10 | 4628406 newworldorder
newworldorder's picture

It may catch up with you eventually, but their grand experiment is to put off that possibility indefinitively. They have more time than you and your family may have. This shit has been going on since the end of WW2. How long do you have on left on this planet?

Fri, 04/04/2014 - 22:11 | 4627210 tony bonn
tony bonn's picture

cluesless? i was thinking of another word starting with "C" and ending in "UNT"

Sat, 04/05/2014 - 02:24 | 4627558 MontgomeryScott
MontgomeryScott's picture

I WOULD call this thing a CUNT, but that describes a part of a woman's body. The ONLY important one, I might add...

Sat, 04/05/2014 - 12:29 | 4628066 TBT or not TBT
TBT or not TBT's picture

The central nervous system is massively attached to the aforesaid fleshy bits, typically.

Fri, 04/04/2014 - 22:20 | 4627216 ebworthen
ebworthen's picture

Fuck that cunt, and the circus train her ilk rode in on.

These people have no idea they are destroying the World, and stoking the flames of death and destruction.  Or they do and they don't care.

Either we kill them now and restore sanity or our children and grand-children suffer the consequences. 

I'm serious, kill these fuckers and their bankster handlers.

Talk won't fix it.

Actions only.

Fri, 04/04/2014 - 22:22 | 4627239 BeetleBailey
BeetleBailey's picture

A-fuckin-MEN.

I'm sick of calling these cunts - cunts.

Why can't someone like the Ft. Hood motherfucker take it out on the cunts all meeting at Davos, or the Dick-Willie Clinton Global Trim Hunt?

LaGarde needs to go to the beach - and stay the fuck there.

 

Fri, 04/04/2014 - 23:23 | 4627351 mrpxsytin
mrpxsytin's picture

I'm serious, kill these fuckers and their bankster handlers.

Please don't say things like that, and definitely don't act upon those words! Violence is the easy way, and therefore the wrong way. It doesn't end well. We have to go the hard way. The hard way is to endure this depravity with a smile on our faces. If we are truly right, and they are truly wrong then one day each will get their just deserves. 

Any derivatives of ignorance have horrific consequences for the people who are afflicted by them. What we need to do is rid ourselves of ignorance and pass that knowledge on to our children, grandchildren, who in turn will pass it down the line. One day this depraved system will collapse, and it will be those families that are knowledgeable who will flourish. Those that are ignorant will suffer immense pain. 

Don't kill anyone. They will end up killing themselves. 

 

Fri, 04/04/2014 - 23:41 | 4627374 ebworthen
ebworthen's picture

Sure, continue to talk, the endless debates, the round-n'-round with lawyers and politics - while our children and grand-children's future is cemented into serfdom.

If that's what you want by all means don't take action.

40 years of it is enough for me, ENOUGH.

Done.

Act.

Sat, 04/05/2014 - 00:56 | 4627477 mrpxsytin
mrpxsytin's picture

Who said anything about talking? I just smile and nod.

I believe I am acting in the best way I possibly can. I act every day to rid myself of ignorance, whilst also pursuing a career in educational psychology. The less ignorant I become the greater my abilities will be to educate others. This path is extremely challenging for people like us because we must go in to, and succeed in, the very system that utterly disgusts us. But every day I turn up to work and try my best. That is acting.

Killing people is not the only action you can take. And I would argue that it is one of the worst actions you can take.

I for one, will not be joining any bankster lynch mobs. I would urge you not to either. Brutes use violence to 'solve' their problems. Are you a brute?

Sat, 04/05/2014 - 01:21 | 4627508 ebworthen
ebworthen's picture

Oh good Lord, educational psychology?

You are part of the problem.

Stock up on vaseline.

Sat, 04/05/2014 - 01:41 | 4627525 MontgomeryScott
MontgomeryScott's picture

I'm going long on Doc Johnson's Anal Lube. Educational psychologists usually suffer from anal-retentive issues (they want to get fucked in the ass REALLY, REALLY BADLY, but they don't want it to hurt too much when the big dick tears them up).

Sat, 04/05/2014 - 03:07 | 4627599 mrpxsytin
mrpxsytin's picture

I highly doubt that you've got any research to back that up. But it sure is a cool story. 

Sat, 04/05/2014 - 03:04 | 4627593 mrpxsytin
mrpxsytin's picture

Hehe that's exactly what my dad thinks about it.

Hopefully I can make you guys proud. It's sad that you're so eager to insult someone who is on the same side. Seems like you resort to aggression as a default. 

 

 

Sat, 04/05/2014 - 15:04 | 4628390 newworldorder
newworldorder's picture

No need to insult your profession. It does however provide window in to your perspective. Kudos to you for your self reliance. For most of us here however, we probably see change happening on different terms. We have lived long enough to know that change comes through power and in most historical perspectives, power is not relinquished voluntarily. Please dwell on that.

Sat, 04/05/2014 - 15:51 | 4628469 Anusocracy
Anusocracy's picture

"power is not relinquished voluntarily. Please dwell on that."

Indeed it is. It's called 'voting' - the most successful subterfuge in mankind's history.

People will kill just to be able to give away the power that they have.

Sat, 04/05/2014 - 16:46 | 4628557 RaceToTheBottom
RaceToTheBottom's picture

"I act every day to rid myself of ignorance, whilst also pursuing a career in educational psychology. "

I hope you survive.   I fear you will be assimilated...

Sat, 04/05/2014 - 17:29 | 4628636 Sean7k
Sean7k's picture

Mrpxsytin, please read,"The Underground History of American Education" before you waste anymore credits and money. You go down that road and YOUR the problem.

Sat, 04/05/2014 - 01:32 | 4627521 MontgomeryScott
MontgomeryScott's picture

@ 'mrpxsytin':

Are you espousing the point of view that has caused hundreds of millions in the 20th century to be murdered by those who have the weapons, as evidenced?

Are you calling for a peaceful end (and a short life) for those who do not want to die at the hand of those who wish to kill them; and are sociopathic in thier intentions?

Are you willing to be the man in Tiananmen Square who was run over by the tank, or the civilian who was 'smart-bombed' in Afghanistan driving to a wedding party? Are YOU the one who lined up obediently and gave up your gun; only to be gassed by the Hitler regieme, or taken to Siberia to be a slave laborer? Are YOU the one who was a professor, that Pol Pot rounded up and murdered in 'The Killing Fields'?

NO.

YOU are a PUSSY. YOU don't even have the BALLS to stand and FIGHT against those who ARE going to enslave you, use you, abuse you, and kill you.

Your advice, while maybe well-intentioned, is NOT RELEVANT.

Smoke a joint, and take another hit of whatever you think is 'real', and GTFOOH, you socialist pansy wannabe.

 

Sat, 04/05/2014 - 02:44 | 4627572 UselessEater
UselessEater's picture

or 'mrpxsytin' can try to raise a family and care for elders in a nation Fucked Up Beyond Recognition (FUBR) by Largarde/IMF and their gangster cabal organisation.

Then 'mrpxsytin' might feel differently - easy to focus on PC stuff when its not your family experiencing economic warfare and despair that reduces lifes span, increases suicide, demoralizes and destroys the inate capability of people to manage their own industry and futures.

But lets focus on soft mush, the Gates Foundation will save nations FUBR by providing mobile phones for digital currency and vaccination programs; we'll be PC about the calorie e-card and autistic babies.

'mrpxsytin' stop de-railing the discussion with irrelevant discourse and focus on the actual impacts your family and friends are going to be forced to Experience.

 

Sat, 04/05/2014 - 04:49 | 4627652 mrpxsytin
mrpxsytin's picture

I'll respond to both of you here. 

1. I have a child and wife. I am raising a family. Hopefully another child is on the way. My first was born before I turned 27. Not only do I have balls, but I am putting them to use unlike most men my age.

2. I have owned a firearm since it was legal for me to do so. And considering I'm Australian, living with some of the strictest gun laws in the world, that puts me in the minority. 

3. My family has been self employed since before I was born and I have not received government welfare. I am not a socialist. 

4. I worked as a farmer for 2 years where I regularly slaughtered my own animals to provide the best meat possible to my family. How many pussies do that?

I bet you didn't think I was like that. No. Somehow you thought I was a pussy socialist because I am against using violence to solve problems. How does it feel to be so wrong?

You're not going to beat this system with violence. It won't work. You have to beat it with intelligence. Animals use brute force. If you go down that route you are throwing away your true power, the power of rational thought. 

Sat, 04/05/2014 - 08:41 | 4627779 UselessEater
UselessEater's picture

Emotional expression doesn't make ZH'rs mass murderers; nor does their (at times) crude and rude expression make them people I would be scared to be stuck in a lift with. Get over it stop trying to censor people, and recognise the sentiment behind the words - the desire to stop the intentional BS destroying lives. Legarde swears louder and more crudely than anyone on this site by her intentionally dupliticous bull shit.

I was born in war in Africa then got the luxury of 'peace' in Aust - violence is committed by the Largarde class and their propganda & destruction & weapons & chemicals - not by us. Whatever we at ZH spout it can never ever match the violence of those you want to beat with words and intelligence.

Here is a rational thought - fuck the genocidal terrorism of the IMF, World Bank, BIS, wealthy Foundations, elite families and the jerks who want to deal with them with kind words whilst they destroy nations and cause the premature deaths of countless men, women and children. These war criminals who target civilians like Legarde make a nuclear bomb look kind.

Feel free to practice kind words on the Robert Mugabe cut out that these bastards install, arm, protect and unleash on you.

(BTW I hope you don't ever have to.)

 

Sat, 04/05/2014 - 08:43 | 4627783 Perfecthedge
Perfecthedge's picture

 

...plus add to that the passive-aggressive strategy of refusing to pay taxes and loans back.  Everybody should go out, max out credit cards and loans and then on Date X (the same for everybody) STOP and REFUSING to pay any cent back.  Give them some of their medicine.  Let them suffocate on debt, if its debt what they want, GIVE IT TO THEM.

They can't round up and jail millions of people!  These fuckers live off your fear and sheepish obedience.  Civil disobidience is powerful.  If you don't have the stomach for "bigger things", start small.  Educate your mind to DISOBEY! Disengage from the notion that you should be that little-sweet, obedient citizen.  Because nobody gives a fuck if you filled out your tax form in time.  FUCK THEM and their FORMS and burocratic monkey shows.  Time to throw some serious monkey wrenches into the running machinery.

There are many forms of fight.  No need to burn some police cars.  Hit them where it hurts most: THE MONEY FLOW.

Sat, 04/05/2014 - 09:08 | 4627804 Bearwagon
Bearwagon's picture

What do you say? "They can't round up and jail millions of people!" Helloho! Earth to Perfecthedge: Not only can they do that, they already have, and will again. Wake the fuck up!

Sat, 04/05/2014 - 09:14 | 4627814 Perfecthedge
Perfecthedge's picture

Well the Nazis did, this time it has to be different.  Resistance until the End. I better die on my knees and in freedom, than standing and in serfdom to these psychopaths.

Sun, 04/06/2014 - 03:56 | 4629465 Bearwagon
Bearwagon's picture

That the spirit!
"But I'd rather be a free man in my grave
Than living as a puppet or a slave"
http://www.youtube.com/watch?v=7Znh0OM9jiA
(Jimmy Cliff: The Harder They Come)

Fri, 04/04/2014 - 23:51 | 4627394 Anusocracy
Anusocracy's picture

Their actions have a basis in how they perceive survival.

Fri, 04/04/2014 - 22:16 | 4627219 FieldingMellish
FieldingMellish's picture

She knows what she is doing. Its not for the benefit of the masses.

Fri, 04/04/2014 - 22:34 | 4627266 Spitzer
Spitzer's picture

Some people think that but I don't think its true.

 

They really do believe their own bullshit. The academics feel above the capitalists this way.

Sat, 04/05/2014 - 01:45 | 4627530 UselessEater
UselessEater's picture

Oh, Legard has seen the devestating impacts of her bullshit on many nations and many men, women and children; and she doesn't give a shit because, she serves a "higher" agenda and all the suffering by others is worth it in her view.

Just as long as she doesn't have to suffer and is promised greater power in the future over those she despises (us) and who must be controlled for their own good.

Nasty is just nasty and it will search for an 'ideology' to suit its nastiness and create the bubble of 'believers' it can feed off to spread more nastiness.

In this bubble of 'believers' are the suckered in useful idiots like the academics who's downfall is their conceit and approval-seeking vanity.

As a woman I despise those who tout her as a role-model; just as much as I despise her capacity to watch humans suffer for the cabal in nation after nation after nation.

 

 

Fri, 04/04/2014 - 22:16 | 4627220 chirobliss
chirobliss's picture

"The world’s official economic institutions are run by people who believe in monetary fairy tales."

As opposed to money grubbing libertarian oligarchs who believe in Objectivist fairytales...

Please!!


Fri, 04/04/2014 - 22:31 | 4627256 nmewn
nmewn's picture

"As opposed to money grubbing libertarian oligarchs who believe in Objectivist fairytales..."

lol...wut?

Can you name one?

Fri, 04/04/2014 - 22:32 | 4627259 Dick Buttkiss
Dick Buttkiss's picture

"libertarian oligarchs" is an oxymoron.

No oxy in your case.

 

Fri, 04/04/2014 - 22:42 | 4627284 Spitzer
Spitzer's picture

I think its a sarc.

 

Cuz "objectivist ferry tale" is an oxymoron too no ?

Sat, 04/05/2014 - 00:00 | 4627404 Oldwood
Oldwood's picture

They absolutely believe what they say is necessary to maintain their power  and contol. They promise more than society can reasonably expect to produce, especially given the disincentives to work that they promote. This is only possible by creating an endless stream of fiat. You can feed your livestock sawdust for a while, but when you continue to increase the empty fiber and decrease real protein and calories, they eventually die, but only after a really bad case of bowel distress.

Fri, 04/04/2014 - 22:20 | 4627233 lynnybee
lynnybee's picture

isn't the I.M.F. bankrupt ? 

Fri, 04/04/2014 - 22:23 | 4627240 dexter_morgan
dexter_morgan's picture

Krugman without the beard (or at least not as much of one)

Fri, 04/04/2014 - 22:33 | 4627262 alfred b.
alfred b.'s picture

 

    Krugman without tits either!

 

Fri, 04/04/2014 - 22:49 | 4627295 dexter_morgan
dexter_morgan's picture

But she's so hot sporting that healthy all body tan.......

Sat, 04/05/2014 - 14:48 | 4628355 newworldorder
newworldorder's picture

Dont forget her lovely scarves. So chick, so alluring. She must have hundreds in her wardrobe.

Fri, 04/04/2014 - 22:32 | 4627258 damicol
damicol's picture

Understand one thn,

 

 This fucking pig ugly  sex changed transvestite caricature of a fucking parisian  slop house whore begging for a fag by blowing even the fucking tramps or for a mouthful of cheap booze, is is so fucking  low life and so desperate for  a bite at the taxpayers table she will suck anything , fuck anything even a fucking commie pig like barusto , say anything  even a moron would know was a lie, to satisfly this cheap filthy hookers craven need for a quick fix of publicity.

Put this fucking camel cunt out to grass or blow the fucking parasitic bitch to hell but whatever shut this  bitch up before I vomit again

Fri, 04/04/2014 - 22:41 | 4627279 booboo
booboo's picture

Ok then.....yea, I think this thread is a wrap, you pretty much said everything.

Sat, 04/05/2014 - 10:39 | 4627900 FLHRS
FLHRS's picture

Hey damicol, don't mince your words.  Tell us how you really feel.

Fri, 04/04/2014 - 22:39 | 4627273 madbraz
madbraz's picture

Not morons, simply central bankers doing everything possible to protect banks that own them.

Much more important news today has been largely ignored - NY Fed increased reverse repo daily limit per participant to $10 billion. Since December, it has gone from 1 to 3 to 5 to 7 and now 10 billion.

This is stealth manipulation, a giveaway. Collateral becoming scarcer, so they provide it for a subsidized cost to dealers and MMFs. They are not supposed to rehypothecate it, but you can bet your life they find a way to. And then short treasuries with the collateral.

Look at the behavior of treasuries every day at 12:45, when rev repo starts. Its the time when treasury strength stops and becomes weakness.

Every friggin thing in this market is rigged. The NY Fed will push all levers to keep it up. Once again they will fail.

Sat, 04/05/2014 - 01:55 | 4627537 UselessEater
UselessEater's picture

Why is Jim Willie the only one talking about this?

Am I missing some good commentry from other analysts? Any suggested links for someone trying to learn appreciated.

Fri, 04/04/2014 - 22:50 | 4627293 Cthonic
Cthonic's picture

 "A potentially prolonged period of low inflation can suppress demand and output and suppress growth..."

She does indeed seem to be suppressing some thoughts...  Is she talking economics or trouser snakes? 

Fri, 04/04/2014 - 23:01 | 4627318 rsnoble
rsnoble's picture

Another one of this cunt disorderments great ideas is that personal real estate property taxes are under utilized.

More like citizens personal weapons are under utilized.

Fri, 04/04/2014 - 23:02 | 4627319 AdvancingTime
AdvancingTime's picture

Christine Lagarde and the IMF is not the answer. The pool of money the IMF loans and redistributes around the world helps to stabilize countries if they are failing or economically unstable.  While the IMF exerts a fair amount of influence, it is political in nature and pushes the way the wind blows.

This bring up the issue and questions as to how muddled this system is. With a loud voice the IMF is overrated, it often uses only a small amount of money to make the very desperate march in line, at times this means not solving problems but helping to kick the can down the road. More on this overrated institution in the article below,

http://brucewilds.blogspot.com/2013/04/imf-overrated-institution.html

Sat, 04/05/2014 - 00:21 | 4627432 Cthonic
Cthonic's picture

If you're not familiar with them, you might consider reading Confessions of an Economic Hit Man or viewing the documentary Four Horsemen (Chomsky is his usual corrosive self however a lot of other good interviews are in that piece).

Sat, 04/05/2014 - 02:01 | 4627543 UselessEater
UselessEater's picture

The IMF and its cohorts are only 'over' rated if you live in a nation where they are still using the soft glove.

Other nations know the IMF is one member of a gang that breaks your country and sets it up for permanent servitude and decline.

Sat, 04/05/2014 - 07:28 | 4627736 Urban Redneck
Urban Redneck's picture

That's precisely whv the IMF is overrated, and Perkins is a troglodyte who either doesn't understand the other pieces of the puzzle (including who he actually worked for), or can't figure out how to sex it up in order to sell more books (if he was a reel spook, instead of a kook, he would sexing it up to sell war not books) -- the IMF only comes into play after the engineered crisis has occurred.  Curing a problem requires treating the disease, not its late stage symptoms.  You need to look at how the crisis is created in the first place (and there are other organs of the parasite, such as the ECOSOC appendages, that have a far greater impact).  

The focus should be to prevent new membership and growth of TPTB, not trying to skim the return on their investment for (perhaps) more noble 

Sat, 04/05/2014 - 09:38 | 4627838 UselessEater
UselessEater's picture

Agree, the IMF was created by TPTB and new membership is being created in our various nations everyday with social/eonviro/econ 'reforms'... its very stealthy and seductive to comfortable middle-class people until reality hits a bit too hard and a bit too close to home; which makes prevention a huge challenge and denial an easier option.

Fri, 04/04/2014 - 23:03 | 4627322 palmereldritch
palmereldritch's picture

See. Datz why yoo got prowblemz wit your flattire. Itz gotz low flation.

Fri, 04/04/2014 - 23:06 | 4627325 AdvancingTime
AdvancingTime's picture

I contend that never before has mankind diverted such a large percentage of wealth into intangible products or goods and this is the primary reason that inflation has not raised its ugly head or become a major economic issue in recent years.

Like many of those who study the economy I worry about the massive debt being accumulated by governments and the rate that central banks have expanded the money supply.  If money suddenly flows into tangible goods seeking a safe haven inflation could soar even as debts go unpaid and promises are left unfilled. More on this subject below.

http://brucewilds.blogspot.com/2014/03/few-people-really-understand-econ...

Sat, 04/05/2014 - 09:47 | 4627849 geno-econ
geno-econ's picture

Interesting article that suggests debt fiat currency will create an unpredictable counter force and that it may be connected to quest for products or commodities of real future value. This is already occurring
In the Crimea where Russia is showing potential strategic strength based on their energy exports in currencies other than petrodollar which is a direct threat to US dollar as reserve currency and basis for printing press ecomony of West. Meanwhile, IMF is doing only thing they know ---lending more money tied to austerity with all it's pitfalls. This may be natural result of Fiat Gone Wild which has led to many inconsistencies, imbalances prevalent western societies.
This not to say Russia represents a better economic model--- it does not--- but it is a move to evaluate energy value in real currency denomination, rather than fiat.

Fri, 04/04/2014 - 23:08 | 4627332 dexter_morgan
dexter_morgan's picture

Wow, the sickly looking Merkel beat bath house Obozo to the punch

http://www.bbc.com/news/business-26851906

Fri, 04/04/2014 - 23:21 | 4627349 Duc888
Duc888's picture

 

 

She(it) makes it's money off of the skim, other people's production.  Just another Lamprey.

Fri, 04/04/2014 - 23:28 | 4627355 luckylongshot
luckylongshot's picture

Lagarde is the enemy

Fri, 04/04/2014 - 23:31 | 4627360 StychoKiller
StychoKiller's picture

Nonsense, I'll just call in the cargo planes in with my painted-rock radio and coconut headphones.  We'll be wealthy in no time!

Fri, 04/04/2014 - 23:35 | 4627364 pipes
pipes's picture

Too much time in the tanning booth, Chrissy.

 

Now get in the kitchen and make me a sandwich, biotch.

Sat, 04/05/2014 - 02:25 | 4627561 Peter Pan
Peter Pan's picture

When the people tan her hide that will be the ultimate result.

Fri, 04/04/2014 - 23:38 | 4627369 kchrisc
kchrisc's picture

I know that JPM uses the derisive term "Muppets" for their customers, but it really is more apropos to these pols and crats that the elite use a face on things.

"Stick a stick up their ass and put 'em in front of the cameras. We'll handle the rest."

 

Fri, 04/04/2014 - 23:38 | 4627370 Wilcox1
Wilcox1's picture

I'm imagining a transposition where Christine LaGarde somehow trades places with any mainstreet lifelong waitress and that waitress assumes her duties at the IMF.  Somehow this just feels right.

 

P.S.: Anytime David Stockman posts, no matter what else is going on, put him up there in the blue box.  

Fri, 04/04/2014 - 23:50 | 4627390 tickhound
tickhound's picture

"Low-flation" is another symptom of the lack of debt demand.

She's no idiot... To her the mission is to entice borrowing and debt growth. That's the system. So she sets policy to do this very thing.

And again, her orchestra isn't stupid either. She's not gonna come out and say "our problem is we can't seem to convince you to borrow and take on more debt." No serf wants to hear this shit right now.

So she says economically sophisticated words like "lowflation" to confuse the REAL idiots.

Fri, 04/04/2014 - 23:58 | 4627399 Eahudimac
Eahudimac's picture

OK. This bitch is fucking orange like an oompah woompah. WTF do you expect?

Sat, 04/05/2014 - 02:24 | 4627557 Peter Pan
Peter Pan's picture

A dose of Fukushima should restore her color.

Sat, 04/05/2014 - 18:33 | 4628740 ThisIsBob
ThisIsBob's picture

OD on the man-tan.

Sat, 04/05/2014 - 00:17 | 4627424 q99x2
q99x2's picture

Well WWII never ended. When nukes arrived the war moved to finances and conventional wars against nations that did not have nukes. Now the financial wars are becoming ineffective because of no wealth backing the fiat. So we are back to hitmen being used against rivaling oligarchs. There may have for a time been some economic theories that made sense but we are at the end being able to use FRAUD as a military weapon. Time to give up the hope of conquering the world, move to crypto currency and replace governments with open source software solutions.

Or say bye bye future.

Sat, 04/05/2014 - 00:43 | 4627462 joego1
joego1's picture

Don't worry Darwin said that her genes will die eventually.

Sat, 04/05/2014 - 00:54 | 4627476 Joe A
Joe A's picture

If they hadn't imposed these harsh austerity measures everywhere in Europe people would have more money to spend.

Sat, 04/05/2014 - 06:31 | 4627689 Singelguy
Singelguy's picture

You obviously do not live in Europe. The definition of austerity here is reduce the rate of increase in government spending (while still running annual deficits and increasing national debt) and raising taxes on the people. In the meantime, there has been no effort to reduce the size of the massive bureaucracies that control and regulate everything. End result, consumers who were already highly taxed, have even less discretionary purchasing power. Everyone is looking for the lowest price for anything they need, and delaying purchases of things they do not need, not because they are waiting for prices to drop but because they simply cannot afford it. The government then wonders why there is no growth and deflation. The sad part is that the increase in tax revenue goes to servicing the ever growing debt which all goes to the banksters. The EU now wants to do the same thing to Ukraine via the IMF. Saddle the country with billions more in debt and pay the banksters through 50% reduction in pensions and a doubling of energy prices over the next 2 years. Greece and Spain have been living this nightmare for the past 5 years.

The only exception has been Iceland. The government held a referendum and the people voted to stick the debt up the bankers' collective asses. Granted, that froze Iceland out of the international finance markets but forced the people to live within their means. Iceland is now on the mend. The rest of Europe can learn a lesson from them. Eventually, the member states of the EU will be forced to do the same. Once the debt becomes so large that the tax revenue can no longer service it, it will have to be restructured and written off. Anyone who has been on ZH for a while knows that all the debt is just money printed out of thin air, so what do the banks actually lose if the debt is written off? The solution to long term growth is to write off the debt, reduce taxes with the savings on interest payments, and reduce the bureaucracy and regulations so that the free market can flourish. Unfortunately, in Washington as well as European state capitals there are too many corrupt politicians and bureaucrats who are profiting from the current system so Ms. Legarde had to tow the line to keep her job.

Sat, 04/05/2014 - 14:34 | 4628322 newworldorder
newworldorder's picture

So - the pain in Spain and Europe is still not painful enough for the average European to do something about it? You may be right. This is a small observation, but to anyone who watches the European Football Leagues, - the stadiums are full and lovely, full of very expensive players, - fans with team regalia and one assumes lots of alcohol flowing at very expensive prices per cup. Where then is the economic pain for the average schmo?

Sun, 04/06/2014 - 07:28 | 4629556 Singelguy
Singelguy's picture

Spain, as well as other Western European countries, have very generous social welfare programs, ranging from unemployment insurance, rent subsidies, healthcare subsidies, and straight out welfare. Even though youth unemployment is high, they collect about €800 a month in benefits. Europeans are not as materialistic as Americans and spend their money on entertainment rather than accumulating a lot of stuff. The reason EU governments continue to deficit spend and accumulate more debt is to sustain all those programs. When the government of Spain (and other EU member states) can no longer service the debt and is forced to cut benefits the economic pain WILL be felt and the social unrest will become far more poignant than what we see on the news now. At the moment, the majority of people don't care as long as the free money keeps flowing, just like the FSA in the USA.

Sat, 04/05/2014 - 16:56 | 4628576 RaceToTheBottom
RaceToTheBottom's picture

"The only exception has been Iceland. The government held a referendum and the people voted to stick the debt up the bankers' collective asses. Granted, that froze Iceland out of the international finance markets "

EXACTLY

I wish the Tylers would allocate a large post of analysis to how Iceland has faired.  We all need to learn from that.

Sat, 04/05/2014 - 01:06 | 4627494 hooligan2009
hooligan2009's picture

lagarde thinks she should live in a palace and the peons should eat cake.

she has never had to balance any books in her life and thinks money grows on trees.

she cannot understand that wealth comes from deferred consumption and hard work, to her people should simply pay all their income to her so she can add helicopter pads and lamboughinis at will to her pool of useless gadgets she will never be able to use properly.

as the saying goes "i fart in her general direction, her mother was a strawberry and her father was a bottom wiper"

Sat, 04/05/2014 - 01:27 | 4627515 Bazza McKenzie
Bazza McKenzie's picture

Keynesians are the same as warmists.  Theory and predictions not matching reality?  Sorry, reality must be wrong.

They both invent excuses totally contradicting all prior human experience.  Keynesians:  "Have to push prices up so people will buy and produce more", despite long term experience that people buy more when prices fall.  Warmists: "You can't find the extra global heat we predicted because it is hiding in the ocean deeps", despite long established physics that warmth in a fluid rises.

They are, of course, mainly the same people.  Big government parasites united with crypto-"private sector" cronies, determined to suck all they can from the people who actually work to produce real goods and services.

Sat, 04/05/2014 - 01:51 | 4627535 artytom
artytom's picture

I can't stand this Parissian bitch. She's typical of the breed. Liars, liars, liars. Pompous confidence tricksters and frauds. Bitch, bitch, bitch.

Sat, 04/05/2014 - 02:09 | 4627550 The Abstraction...
The Abstraction of Justice's picture

They were saying the same thing in Weimar as Joe was barrowing his wages about to pay for the next egg.

Sat, 04/05/2014 - 02:22 | 4627556 Peter Pan
Peter Pan's picture

Quite right. There was even the case of someone who left his barrow full of money outside the shop and when he went back outside the money had been tipped onto the street and the wheel barrow was gone.

 

Sat, 04/05/2014 - 02:20 | 4627555 Peter Pan
Peter Pan's picture

When jobs disappear and pay packets shrink through loss of overtime and retrenchment into poorer paying jobs, then that to me is quite high inflation in terms of what you could buy before as opposed to what you could buy after.

 

Sat, 04/05/2014 - 02:44 | 4627571 gregga777
gregga777's picture

LaGarde is an Enemy of the People of the United States.

The Federal Reserve Bank is Un-Constitutional, is an Enemy of the People of the United States, is being used by the 0.1% to destroy the American Constitutional Republic.

Sat, 04/05/2014 - 03:15 | 4627607 Sandmann
Sandmann's picture

Lagarde is a lawyer......she blows bullshit bubbles for others to swallow

Sat, 04/05/2014 - 04:18 | 4627640 adonisdemilo
adonisdemilo's picture

Hey, Lagarde, you dumbfuck, if you think unconventional measures will help, why don't you just give every person over school leaving age a million dollars/euros/ pounds, whatever.

That single, albeit stupid, move will increase GDP (most certainly for Columbia), and also create a massive pool for you to tax whilst stoking inflation to heights that you wouldn't believe.

Sat, 04/05/2014 - 04:21 | 4627642 Kina
Kina's picture

Mate she is as dumb as a bag of hammers. That is why they set up the other guy, so they can put this brain dead puppet in his place.

 

She is nothing but a mouth piece for the Masters. Problem is she is so fucking dumb she cant even speak bullshit without sounding like street bum on meths.

 

 

Do NOT follow this link or you will be banned from the site!