Expropriation Is Back - Is Christine Lagarde The Most Dangerous Woman In The World?

Tyler Durden's picture




 

Submitted by Martin Armstrong of Armstrong Economics,

Lagarde-Christine

I have gone on record that the most dangerous organization is the now French led IMF with Christine Lagarde at the helm, which has presented a concept report that debt cuts for over-indebted states are uncompromising and are to be performed more effectively in the future by defaulting on retirement accounts held in life insurance, mutual funds and other types of pension schemes, or arbitrarily extending debt perpetually so you cannot redeem. Yes you read correctly, The new IMF paper is described in great detail exactly how to now allow the private sector, which has invested in government bonds,  to be expropriated to pay for the national debts of the socialist governments.

I have been warning that there is an idea that has been running around behind the curtain that the national debt of the USA could be settled by usurping all pension funds in the country. Here is a remarkable blueprint that throws all previous considerations concerning the purchase of government bonds over the cliff. The IMF working paper from December 2013 states boldly:

“The distinction between external debt and domestic debt can be quite important. Domestic debt issued in domestic currency typically offers a far wider range of partial default options than does foreign currency–denominated external debt. Financial repression has already been mentioned; governments can stuff debt into local pension funds and insurance companies, forcing them through regulation to accept far lower rates of return than they might otherwise demand.”

id/Page 8 (IMF-Sovereign-Debt-Crisis)

Already in October 2013, the International Monetary Fund (IMF), suggested the Euro Crisis should be handled by raising taxes. The IMF lobbied for a property tax in Europe that should be imposed where there are no such taxes. The IMF has advocated for a general “debt tax” in the amount of 10 percent for each household in the Eurozone, which also has only modest savings.

People are blind. They think this is authorization to go get the rich. They are going after everyone for the “rich” are tiny players in the game. People do not want to hear that. They want to think the rich can pay the bills for everyone else. That is not practical and even Julius Caesar recognized that they may be a small group, but they are the engine of the economy that creates jobs. It would have been popular for him to wipe out all the rich who he was against. But in the end, he had to solve the debt crisis by simply retroactively attribute all interest to capital in order to solve the debt crisis that led to the first civil war.

There is no discussion whatsoever of reforming the system. They are merely planning to default on savers expropriating their savings, but continue to borrow forever. Nobody is even bothering to look at the structure that simply cannot work.

The money people have saved the IMF maintains should be used for debt service by sheer force. To reduce the enormous national debt, they maintain that government has the right to directly usurp the savings of citizens. Whether saving money, securities or real estate, about ten percent could be expropriated. This is the IMF view. 

Because the government debt of the euro countries has increased a total of well over 90 percent of gross domestic product, they suggest that the people should sacrifice their savings for the benefit of the state. Socialism is no longer to help the poor against the rich, but to help the government against the people. The definition has changed.

In January 2014, the Bundesbank joined the IMF project focusing on a “wealth tax”. In its monthly report they had announced: “In the exceptional situation of an imminent state bankruptcy a one-time capital levy could but cheaper cut than the then still relevant options” if higher taxes or drastic limitations of government spending did not meet or could not be implemented.

In the latest June 2014 working paper of the IMF, they have set forth yet another scheme – extending maturity. So you bought a 2 year note? Well, the IMF possible solution would be to simply extend the maturity. Your 2 year note now become 20 year bond. They do not default, you just can never redeem.

Possible remedy. The preliminary ideas in this paper would introduce greater flexibility  into the 2002 framework by providing the Fund with a broader range of potential policy responses in the context of sovereign debt distress, while addressing the concerns that  motivated the 2002 framework. Specifically, in circumstances where a member has lost  market access and debt is considered sustainable, but not with high probability, the Fund would be able to provide exceptional access on the basis of a debt operation that involves an extension of maturities (normally without any reduction of principal or interest). Such a “reprofiling” operation, coupled with the implementation of a credible adjustment program, would be designed to improve the prospect of securing sustainability and regaining market access, without having to meet the criterion of restoring debt sustainability with high probability.

(THE FUND’S LENDING FRAMEWORK AND SOVEREIGN June 2014)

Now the June 2014 report has a new, far-reaching proposal. This shows how lawyers think in technical definitions of words. There is no actual default if they extend the maturity. You could buy 30-day paper in the middle of a crisis and suddenly find under the IMF that 30 day note is converted to 30 year bond at the same rate.

The huge national debts could be reduced also according to the IMF by just expropriating all private pension funds. The vast amount of people are watching TV shows, sports, or something other than government and they know that. The press will not report the real risk for that is boring news. Hence, where his occupational pensions exist, you can suddenly wake up and find your future is now applied as a contribution to government – thank you for your patriotism. They have successfully convinced the evil is the rich so pay attention to them and you will miss the political hand in your back pocket.

What investor can really judge what is hidden in his fund when the government is denying democratic processes and control the press?

One thing is certain: For years, all pension funds bought government bonds because they were “conservative” and “safe”. I have been warning that the threat would be the Sovereign Debt Crisis. The idea of a pension fund is really now seriously an outdated assumption that government bonds are extremely safe. And you want to even think that the stock markets are over priced and will crash? Where will money go? Government bonds again?

The IMF is an unelected dictatorship over people’s lives and it is now calling the “New profile” of the strategy for public debt must be reassessed. The paper is nothing more than an orderly liquidation of government debt – at the expense of bondholders who can be forced pensioners without their knowledge. The focus is on countries that either have no access to the financial market, or “whose debt is considered sustainable, but not with a high probability.”

The Eurozone is trying to federalize because they know what is coming. The IMF is telling them the path of options ahead but all are designed to sustain the power-base, not what is good for the people. The Euro-leaders have now given up and decided to make more debt while maintaining lip-service to savings. Thus, the Eurozone is likely to soon be directly affected by the IMF plans for when the market get wind of this on the horizon, it will be too late. For you see, pension funds do not THINK out of the box. Nobody will be the first to sell-out government bonds entirely. What if they are wrong and nothing happens? Then the manager loses their job. Even if they find themselves trapped by government either extending their maturities or expropriating all their assets, they will justify themselves as everybody else lost so they did nothing wrong.

Obviously, these ideas from the IMF would mean that if the debt is no longer manageable, then the power of government entitles them to just usurp everything to maintain the power-base. The plan of the IMF I believe will result in widespread civil unrest AFTER the fact. The mere fact that these proposals target investors in government bonds who must adjust to debt forgiveness or negative interest rates shows this is all about sustaining government power. Recently, the IMF has argued the ECB must purchase government bonds in the euro countries to sustain the Eurozone. They are like the terrorist leaders who brainwash kids to blow themselves up for the good of the cause while they would never do the same thing themselves.

It is noteworthy that the IMF imagines this haircut on private creditors as a kind of condition that bankrupt states must do to get any further loans from official creditors. Do as we direct of else. This is what the IMF is doing to Ukraine, no less what they did to Cyprus.

However, unlike private corporate debt where there are the real balances and tangible assets secured by real products and business, the IMF proposal amounts to a global nationalization of public finances, which are unsecured debt. This distinction is important. You get nothing from defaults in government debt but a portion of what remains in private debt. Because the states with the this infinite loop of perpetual borrowing with no intent on paying anything back, we are captured in a world of financing that has become completely corrupted.

The debt load of governments on a global basis is so oppressive, we are rapidly approaching not just the collapse in Democracy, but the collapse or the elimination of all market mechanisms in the public finance. If they cannot sustain the debt, default and FORCE the so many unsuspecting pensioners to surrender their future to allow politicians to live comfortably. They see no problem with people holding government debt should be punishable with massive losses, and are blame for extorting government even demanding interest.

The IMF proposal comes during the World Cup knowing that the press will not cover it much and the average person cares more about who wins what than the sneak attack upon their own lives. This far-reaching plan for the expropriation of savers, investors and retirees clearly shows the reality of socialism.

 

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Thu, 07/03/2014 - 12:45 | 4921872 greatbeard
greatbeard's picture

In my experience, the most dangerious woman in the world is the one you're currently fucking. But that's just me.

Thu, 07/03/2014 - 12:47 | 4921877 Itchy and Scratchy
Itchy and Scratchy's picture

Sounds like this one wants to strap one on & do us!

Thu, 07/03/2014 - 12:50 | 4921889 BaBaBouy
BaBaBouy's picture

Just Fucking Put Your PAPER FIATS Into AU & AG ( & Art)!

The Ultimate Protection From Christine Et Al...

Thu, 07/03/2014 - 12:52 | 4921897 ParkAveFlasher
ParkAveFlasher's picture

TOO.  MUCH.  ORANGE.

Thu, 07/03/2014 - 12:57 | 4921917 Chump
Chump's picture

And always with the damn scarves...hipster IMFdiot.

Thu, 07/03/2014 - 13:03 | 4921935 kliguy38
kliguy38's picture

couple of beers and I think I can take a run at her.......

Thu, 07/03/2014 - 13:10 | 4921961 gtb
gtb's picture

With your car?

Thu, 07/03/2014 - 13:44 | 4922091 A Nanny Moose
A Nanny Moose's picture

I wouldn't touch that with your car.

Thu, 07/03/2014 - 13:56 | 4922147 TeamDepends
TeamDepends's picture

Word is an assassin tried to stab her, but the knife broke.

Thu, 07/03/2014 - 14:02 | 4922177 Pinto Currency
Pinto Currency's picture

 

 

People look to this 'wise' person to guide the world economy.

Here she shows us she is a numerology nutter:

http://www.youtube.com/watch?v=QYmViPTndxw

 

Thu, 07/03/2014 - 14:15 | 4922226 mjcOH1
mjcOH1's picture

"Couple of beers and I think I can take a run at her......."

Fortunately, bestiality is still illegal in 34 states.

Thu, 07/03/2014 - 14:59 | 4922364 BLOTTO
BLOTTO's picture

The most dangerous women in the world is the bitch who gives/gave birth to the Anti-Christ...

Thu, 07/03/2014 - 15:00 | 4922373 Manthong
Manthong's picture

Beauty is only skin deep, but dried leather goes all the way below the navel.  

Thu, 07/03/2014 - 15:22 | 4922457 MillionDollarBogus_
MillionDollarBogus_'s picture

Another cunning stunt...

Thu, 07/03/2014 - 16:41 | 4922716 SWRichmond
SWRichmond's picture

“In the exceptional situation of an imminent state bankruptcy a one-time capital levy could but cheaper cut than the then still relevant options”

So the central banks pump up wealth (asset prices) with the "wealth effect", then their host governments seize it in a one-time levy?  That's pretty fucking sinister, even for central bankers.

Thu, 07/03/2014 - 17:41 | 4922931 CuttingEdge
CuttingEdge's picture

A levy on the sheeple rather than the primary beneficiaries of all that pumping - the 0.1% will have their capital out of reach of any tax grab. Count on it.

Thu, 07/03/2014 - 19:38 | 4923241 nmewn
nmewn's picture

You can too. I did.

Get a shovel...or a boat ;-)

Thu, 07/03/2014 - 23:58 | 4923895 Anusocracy
Anusocracy's picture

She is no more dangerous than anyone else with a God complex.

Fri, 07/04/2014 - 00:23 | 4923928 old naughty
old naughty's picture

Has she just become the most dangerous…Or has she been chosen to lead the reset?

As thread by Pinto Currency above indicated (right at the beginning) : “I do as I am told…”

So she’s not as dangerous as the ones with God complex told her what to do.

Fri, 07/04/2014 - 01:34 | 4924030 SafelyGraze
SafelyGraze's picture

"Is Christine Lagarde The Most Dangerous Woman In The World?"

no sir.

not by a long shot

hugs,
the lady D 

Fri, 07/04/2014 - 01:40 | 4924034 SafelyGraze
SafelyGraze's picture

don't forget me!

hugs,
blythe "ex missus danny masters" masters 

Fri, 07/04/2014 - 07:42 | 4924271 UselessEater
UselessEater's picture

snuggles,

one MORE useless eater to another ;)

D sux BTW

Fri, 07/04/2014 - 11:17 | 4924561 BLOTTO
BLOTTO's picture

Interesting video i found this morning re: Christine Lagarde talking about 'numbers' - in particular - #7

.

Info for consideration:

http://peoplestrustmalaysia.wordpress.com/2014/07/01/occult-message-in-s...

.

 Christine:

.

1:22 – “Now I’m going to test your numerology skills by asking you to think about the magic seven”
1:34 – “Most of you will know that seven is quite a number
2:24 – “2014, you drop the zero, fourteen, two times, seven”
4:08 – “It will mark the 70th anniversary, 70th anniversary, drop the zero, seven, of the Bretton Woods Conference that actually gave birth to the IMF” (7 + 0 = 7)
4:22 – “And it will be the 25th anniversary of the fall of the berlin wall, 25th..” (2 + 5 = 7)
4:38 – “It will also mark the 7th anniversary of the financial market jietters”
5:08 – “After those seven miserable years, weak and fragile”
5:14 – “We have seven strong years”
5:43 – “Now I don’t know if the G7 will have anything to do with it” (G is also the 7th letter of the alphabet)

Fri, 07/04/2014 - 16:56 | 4925408 mjcOH1
mjcOH1's picture

"Interesting video i found this morning re: Christine Lagarde talking about 'numbers' - in particular - #7"

Bitch is crazier than a bag full of squirrels.

Thu, 07/03/2014 - 17:05 | 4922785 Deathrips
Deathrips's picture

Thats a Woman?

 

http://www.youtube.com/watch?v=pqh3tMZhOXQ

 

Gentlemen...meet Lug.

 

RIPS

Thu, 07/03/2014 - 21:44 | 4923609 eXMachina
eXMachina's picture

ot is that stunning Cunt!

Thu, 07/03/2014 - 15:18 | 4922445 Rakshas
Rakshas's picture

I'd fuck a pile of rocks if I thought there was a snake in there but.......

 

 

.........only 34 states eh......... hmmmmmmmm......... 

Thu, 07/03/2014 - 19:49 | 4923267 Jam Akin
Jam Akin's picture

Close but Chris L is actually a lizard don't you know.

Fri, 07/04/2014 - 01:02 | 4923959 Oracle of Kypseli
Oracle of Kypseli's picture

She learned to swindle in her early career in Chicago.

http://www.examiner.com/article/obama-tie-to-dsk-sex-scandal-getting-thicker

 

Fri, 07/04/2014 - 06:46 | 4924222 CuttingEdge
CuttingEdge's picture

Definately a reptillian gene or two in there somewhere.

Alternatively a new incarnation of Agent Orange - far more lethal to the prols than any crop dusting in Vietnam, though.

Fri, 07/04/2014 - 08:54 | 4924360 e_goldstein
e_goldstein's picture

The Oompa Loompas called. 

They want their queen back.

Fri, 07/04/2014 - 11:20 | 4924581 BLOTTO
BLOTTO's picture

Why is Christine Lagarde talking about numerology in a big speech a few months back?

.

Info for consideration:

.

Christine talking:

1:22 – “Now I’m going to test your numerology skills by asking you to think about the magic seven”
1:34 – “Most of you will know that seven is quite a number
2:24 – “2014, you drop the zero, fourteen, two times, seven”
4:08 – “It will mark the 70th anniversary, 70th anniversary, drop the zero, seven, of the Bretton Woods Conference that actually gave birth to the IMF” (7 + 0 = 7)
4:22 – “And it will be the 25th anniversary of the fall of the berlin wall, 25th..” (2 + 5 = 7)
4:38 – “It will also mark the 7th anniversary of the financial market jietters”
5:08 – “After those seven miserable years, weak and fragile”
5:14 – “We have seven strong years”
5:43 – “Now I don’t know if the G7 will have anything to do with it” (G is also the 7th letter of the alphabet)

.

http://peoplestrustmalaysia.wordpress.com/2014/07/01/occult-message-in-s...

Thu, 07/03/2014 - 16:45 | 4922728 25or6to4
25or6to4's picture

@TeamDepends
Then they should have used an icepick instead. Always bring the right tool for the job.

Thu, 07/03/2014 - 16:07 | 4922600 Kirk2NCC1701
Kirk2NCC1701's picture

@gtb: "With your car?" (responding to "couple of beers and I think I can take a run at her...")

Yes, with vehicle of choice: FIAT UNO.

Fri, 07/04/2014 - 01:36 | 4924027 SF beatnik
SF beatnik's picture

When you get to be my age, you'll think she's kinda cute.

 

NOW!  Back to topic at hand.

 

The new IMF paper describes in great detail exactly how to now allow the private sector, which has invested in government bonds, will be expropriated to pay for the national debts of the socialist governments. 

 

 

 

What the fuck kind of statement is that?

 

The Tylers need editing help!!!

 

(But I'm v grateful that the Tylers make this site possible. Thank you thank you thank you.)

 

BTW, you sex starved bastards would fuck her. I know you would, so cut the bullshit. You'd fuck Hillary, too. 

Fri, 07/04/2014 - 03:29 | 4924108 Nick Jihad
Nick Jihad's picture

You are the voice of reason. Compared to Hillary, she is quite attractive. I rather suspect she's a firecracker in bed, but i'll certainly never find out, so why bother. Let's hope I never find out how the IMF would restructure US federal debt.

Fri, 07/04/2014 - 05:06 | 4924181 Lore
Lore's picture

She has two kids (per Wiki). I'm surprised. She seems a very cold fish. The IMF is as broken and corrupt as everything else about the banking complex in that part of the world, so I wouldn't worry too much about these bits of pathology. 

Thu, 07/03/2014 - 13:09 | 4921962 crazybob369
crazybob369's picture

A couple of beers? I'm thinking maybe a couple of kegs and even then...?

Thu, 07/03/2014 - 13:26 | 4922027 Anusocracy
Anusocracy's picture

She being dead, and me being completely drunk.

And that's only a maybe.

Thu, 07/03/2014 - 13:31 | 4922049 0b1knob
0b1knob's picture

< Christine Legarde.

< Hillary Clinton.

 

 

Most dangerous woman in the world.

Thu, 07/03/2014 - 13:42 | 4922083 flacon
flacon's picture

Apples to oranges. HiLIARy is a man. She has already tried to dick us over. 

Thu, 07/03/2014 - 16:10 | 4922616 max2205
max2205's picture

Who ever hit her with the ugly stick?

 

 

Thu, 07/03/2014 - 17:55 | 4922975 BigJim
BigJim's picture

Ha, you beat me to it!

Thu, 07/03/2014 - 13:11 | 4921973 Meat Hammer
Meat Hammer's picture

Yes, a couple of 4,000oz beers might drink the ugly off of her.

Thu, 07/03/2014 - 14:35 | 4922187 TeamDepends
TeamDepends's picture

Maybe for Strauss-Kahn....

Thu, 07/03/2014 - 15:15 | 4922425 agent default
agent default's picture

Nothing short of methanol will do.

Thu, 07/03/2014 - 18:18 | 4923042 Tall Tom
Tall Tom's picture

After 8,000 oz of Beer my dick ain't going to work, hell, I'll be dead, so that makes the question rather moot.

Thu, 07/03/2014 - 13:17 | 4922007 Itchy and Scratchy
Itchy and Scratchy's picture

She's planning on bending you over first!

Thu, 07/03/2014 - 13:51 | 4922122 piceridu
piceridu's picture

Arsen Wenger with a vagina?

Thu, 07/03/2014 - 17:34 | 4922900 TheReplacement
TheReplacement's picture

She is extremely hot for a woman of her century.

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