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Christine Lagarde Calls For World To Embrace "New Multilateralism" Order In 2015
Authored by IMF Managing-Director Christine Lagarde, originally posted at Project Syndicate,
As 2015 begins, policymakers around the world are faced with three fundamental choices: to strive for economic growth or accept stagnation; to work to improve stability or risk succumbing to fragility; and to cooperate or go it alone. The stakes could not be higher; 2015 promises to be a make-or-break year for the global community.
For starters, growth and jobs are needed to support prosperity and social cohesion in the wake of the Great Recession that began in 2008. Six years after the eruption of the financial crisis, the recovery remains weak and uneven. Global growth is projected at just 3.3% in 2014 and 3.8% in 2015. Some important economies are still fighting deflation. More than 200 million people are unemployed. The global economy risks getting stuck in a “new mediocre” – a prolonged period of slow growth and feeble job creation.
To break free from stagnation, we need renewed policy momentum. If the measures agreed by the leaders assembled at the G-20 in November are implemented, they will lift world GDP by more than 2% by 2018 – the equivalent of adding $2 trillion in global income. Furthermore, by 2025, if the laudable – yet not overly ambitious – goal of closing the gender gap by 25% is achieved, 100 million women could have jobs that they didn’t have before. Global leaders have asked the International Monetary Fund to monitor the implementation of these growth strategies. We will do so, country by country, reform by reform.
Besides structural reforms, building new momentum will require pulling all possible levers that can support global demand. Accommodative monetary policy will remain essential for as long as growth remains anemic – though we must pay careful attention to potential spillovers. Fiscal policy should be focused on promoting growth and creating jobs, while maintaining medium-term credibility. And labor-market policies should continue to emphasize training, affordable childcare, and workplace flexibility.
As we ponder the second choice, between stability and fragility, we must consider how we can make our increasingly interconnected world a safer place. Financial integration has risen tenfold since World War II. National economies are so interconnected that shifts in market sentiment tend to cascade globally. It is therefore critical that we complete the agenda on financial-sector reform.
To be sure, there has been progress, especially on banking regulation and on addressing too-big-to-fail financial institutions. But countries must now implement the reforms and improve the quality of supervision. We also need better rules for nonbanks, stricter monitoring of shadow banks, and improved safeguards and more transparency in the derivatives markets. Progress on closing data gaps in the financial sector is urgently needed as well, so that regulators can properly assess risks to financial stability.
Most important, the culture of the financial sector needs to change. The principal purpose of finance is to provide services to the other parts of the economy, which it cannot do unless it enjoys the confidence of those who depend on those services – that is, all of us. Restoring trust should therefore start with an all-out effort to promote and enforce ethical behavior throughout the industry.
The third choice, whether to cooperate or go it alone, is the most critical. No economy is an island; indeed, the global economy is more integrated than ever before. Consider this: Fifty years ago, emerging markets and developing economies accounted for about a quarter of world GDP. Today, they generate half of global income, a share that will continue to rise.
But sovereign states are no longer the only actors on the scene. A global network of new stakeholders has emerged, including NGOs and citizen activists – often empowered by social media. This new reality demands a new response. We will need to update, adapt, and deepen our methods of working together.
This can be done by building on effective institutions of cooperation that already exist. Institutions like the IMF should be made even more representative in light of the dynamic shifts taking place in the global economy. The new networks of influence should be embraced and given space in the twenty-first century architecture of global governance. This is what I have called the “new multilateralism.” I believe it is the only way to address the challenges that the global community faces.
The year 2014 was a tough one. The recovery was slow, a series of dangerous geopolitical risks emerged, and the world was confronted with a devastating Ebola outbreak. This year may be another tough one, but it could also be a good one – a truly multilateral year.
New momentum on global trade could help unlock investment worldwide, and I am hopeful about the new Sustainable Development Goals (which will succeed the Millennium Development Goals in 2015), and about the prospects for a comprehensive climate-change agreement at the end of this year.
Against this backdrop, the adoption of the IMF reforms by the United States Congress would send a long-overdue signal to rapidly growing emerging economies that the world counts on their voices, and their resources, to find global solutions to global problems.
Growth, trade, development, and climate change: 2015 will be a rendezvous of important multilateral initiatives. We cannot afford to see them fail. Let us make the right choices.
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"As we ponder the second choice, between stability and fragility, we must consider how we can make our increasingly interconnected world a safer place."
You could start by calling off your war in Ukraine.
Christine, innocent people are dying, so Kiev could get a loan from you.
Paul Schulte says Europe has the worst corporate problems and the worst Liquidity problems. The Bank Report Cards were shams. Greece is like 1% of EU Economy, nothing.
- Italy, France, Spain have bad Corporations, bad assets
- Many Banks still hold Level 3 Assets (Toxic)
- Italy has not Liquidity at all
Sheesh, Christine, aren't you supposed to be a Banker??
- Clean up those Derivatives, Make Bankruptcy laws for individuals more humane, trim down those big corporations
Future wealth redistribution -- After the collapse, a country shack with a garden and access to water will become priceless, and a $15 million apartment in NYC will become worthless.
Quote from Mike Tyson "Everybody got a plan, to they get knocked out".
Besides structural reforms, building new momentum will require pulling all possible levers that can support global demand. Accommodative monetary policy will remain essential for as long as growth remains anemic – though we must pay careful attention to potential spillovers. Fiscal policy should be focused on promoting growth and creating jobs, while maintaining medium-term credibility. And labor-market policies should continue to emphasize training, affordable childcare, and workplace flexibility.
Translation: Besides structural financial reforms, that are designed to put even more money into our pockets, building new momentum will require turning on all possible spigots of money to support oligarch demand, because after all, we wouldn't want them to stop recieving our ill gotten booty, now, would we? Accomodative monetary policy will remain essential as Viagara to a guy like Krugman as long as growth remains anemic, because it's never enough. Though we must pay careful attention to potential spillovers in the media. Fiscal policy should be focused on promoting insider growth and creating jobs in the Financial markets for the children of the Oligarchs, while maintaining a thin screen of credibility (very thin). And labor-market policies should emphasize training in fixing robots and whatnot, affordable childcare for the useless breeders and workplace flexilibility, like the Obamacare cap on full time work. Then and only then, when our bank accounts overfloweth and the common man has a boot in his face, will we be happy, forever and ever!
Here is a totally insane conspiracy theory;
All Central Banks, Wall Street, London City, Russia, China, brazil, all other Global Financial centers & traders, Company CEO's and anyone in an enabled position in a Corporation, is racking up as many debts as is possible and stealing as much loot as is possible (and storing said loot as personal wealth in relative safe hard assetts) knowing the huge bubble is going to purposely be burst. Afterall it is only fiat money, conjured up out of thin air. It won't be missed. Black holes start to show up in Company Balance sheets.
As directed, China Central Bank bursts the bubble by dropping US Dollars which triggers worldwide financial collapse. Euro & EU toast. All nasty ledgers/evidence comprehensively erased.
Unelected BIS, UN, G20, Trilateral Commission, CFR, RIIA, Committee of 300, The Bilderbergers, et al all ride to the rescue with a new world currency that is precious metals backed (& already enabled via SDR) that globally everyone accepts without question. All Countries indebted, all natural resources raped and pillaged. Job done. New World Order. Who needs the EU in any case?
Global Justice system in place through the International BAR, Global Military police force in place via UN ... anyone getting the picture? How many unelected NGO's and Commissions are there in the world?. Food, Health, Environment...They do not appear to be Regulated by any Country's borders, Rules or Regulations.
Then there are those 15 wealthy and powerful families (Rothschilds, Rockefeller, Merovingian, Collins, Astor, Kennedy, Russell, Du-pont, Freeman, Van Duyn, MacDonalds, Onassis, Bundy, Li, Reynolds, Disney and kripp)?.
Maybe I have joined too many dots (and I have not had a drink yet)! Sincere apologies folks.
Bundy??? Wealthy and Powerful? Fawk, when I met the family, they were wearing flannel shirts, cowboy hats and pushing cows around the desert (while the BLM was taxing the grass, that the cows ate). Oh, and Kripps SB spelled Krupps, unless you mean the Crips.
Thanks STP for your input, I did mean Krupps, it got more than alittle confused with Cripes (which is how I felt after reading Lagardes insane wishlist)!
So, I guess that means we're all invited to the gang bang.....as guests of honor.
Christ. She wants a one world government & one world currency.
"The third choice, whether to cooperate or go it alone, is the most critical. No economy is an island; indeed, the global economy is more integrated than ever before."
Here is a summary of the IMF's "Reforms for the USA 2015!"
http://www.ft.com/cms/s/0/9026530c-821d-11e4-a9bb-00144feabdc0.html#axzz...
Lagarde is an egomaniac. Previously she was trying to push 'the new mediocre' for low growth economies in the eu, completely in denial that her IMF policies created it. Now she's pushing 'new multilateralism'. She is desperate to be important and relevant in the economic world but is simply a lawyer and a patsy.
Did she say ANYTHING?
She needs to back off the tanning bed. Wonder how they pick these folks to head up shiz like IMF..whatever that really even is.
Back to doing nothing....
Was this speech taken from the HungerGames movie...?
Oxfam says that the 1% will own more than the rest of us. That is the not so new multilateralism.
Get that nag some Agent Orange!
In that picture to this story is that her finger pointed at her head?...
Cause it really should be a loaded .357 with hollow points!
I was in Delhi a few years ago where she was staying. She walked into the hotel and BYPASSED the x-ray machine at the entry. Entitled bitch.
I was in Delhi a few years ago where she was staying. She walked into the hotel and BYPASSED the x-ray machine at the entry. Entitled bitch.
And trust me C P
When the time comes she will have a nice little 3 bedroom 2 bath 3 miles below ground with the likes of the Rothschilds, Rockefellers and "Darth" Soros....
But only if she stays a very bad little evil cunt that does what she's told!
Flunky: "Ms. Lagarde, the people have no bread!"
Chrissy: "Let them eat New Multilateralism!"
well written.
on the surface, too good to be true.
Observe the Game-player reactions in Davos.
You're joking, right? Are you that easy to impress? Completely underwhelming and I'm being very generous here.
this is all a joke
If only that was a nail gun instaed of her finger (in the image used for this blog post).
multi, multi, multi
I think she drinks too many multi vitamin juices, hence the skin color
Let's file this one under the category "multisorely disappointed"
I think she has a brain tumor pressing against her frontal lobes.
The Swiss rejected ECB QE. Why wouldn't the Swiss want over 4 trillion Euros on their balance sheet? Christine wants us all to share in the ponzi scheme for the greater good of all humanity. (sarcasm).
Moar Maoist central planning and moar cowbells. I don't think multilateralism means what she thinks it means. What a dried up cunt.
Old leather face needs more sun.
Well I guss when she wrote this she was still digesting that she hadn't been informed by the Swiss about their decision so it turned out to be blurry talk about nothing...
Two statements she made regarding the SNB just now:
"My understanding was that very, very, very few people were informed of anything," (If I wasn't informed it must have been a one man decision by Mr. Jordan)
"I fully undersand why this has taken place. There are very good rationales," Lagarde said. "We hope that the situation will stabilise and that this very erratic volatility movement will be long forgotten."
Multilateralism sounds like a desire to support those economies that have made bad decisons for the longest time. But Europe is not alone in this. Looks at US debt and the ongoing deficit - and so many other government and individual debt levels. So much of it enabled by phony non-market interest rates. Kyle Bass, and others, refer to this 70 years of drunken sailor spending as the "debt super cycle." Its world wide. Just during his time in office Obama has gone "Thelma and Louise" over-the-cliff pedal to the metal with spending, and things weren't great when he got in office. Europe went 'way stupid' socialist/communist over-the-cliff spending decades ago.
Does anyone really think worldwide central bank monetary machinations can fix things? Its a pipe dream.
My dear Christine, you need to spend more time with your giant zucchini and bottle of AstroLube....
Hypocrite
There once was a Tart named Christine
Whose skin tones were all but Pristine
She pontificated with both arms
Corrupt bankers extolled her charms
Call her IMF perversions Obscene.
http://news.yahoo.com/imf-chief-lagarde-charged-over-corruption-case-091...
Probably should be prison bound. Notice you don't hear too much about this anymore.
LaGarde says to "Embrace New Multilateralism"
Nancy Pelosi says to "Embrace The Suck"!I think she's David Dickinson in drag.
https://www.google.co.uk/search?q=david+dickinson&safe=off&espv=2&biw=16...
Why didn't she mention forcing the BIS and all Central Banks to fully disclose all their gold trading?It's non-transparent and what is there to hide if gold is not money?
-- on the 7th hour of the 7th day of the 7th month the 7 doctors say she was born to be corrupt with a carotene overdose and she'll have 7 billion dollars so don't you mess with her!
-- thanx to willie dixon
She's orange because she has a radioactive poisonous glow.
Wow, four pages of comments and no-one hit her recent speech to the, Council of Foreign Relations:
https://www.youtube.com/watch?v=kgU5Nvi9k5g#t=22
Says everyting you need to know about her philosophy. I think "collectivism" sums it up.
I call on Christine Lagarde to embrace half a dozen hand grenades, pull the pins, wait three seconds, then fall forward. Do the world a favor for once.
What did they agree at the G20? WW III? because thats the only way GDP for these countries are going to increase by 2% in the next 3 years.
The whole statement is totally inconsistent with the truth and anyone with a braincell can see the lies. She talks about Peace when she funds the Ukraine Junta, She talks about Structural Reforms at this stage, when clearly these reforms should have been in place in 2008....The private sector are not interested in growth but in stock buy backs at low risk (based on the same policy makers that should be helping the world growth!) and automation of jobs at the risk of the people, The government sector havent got the skills or capability to launch growth and create jobs, they are owned by the corporatocracy and the banks. She talks about ethical behaviour when no bankers have been jailed since 2008.
All of these reforms take months to be implemented (which there is clearly no desire), the luxury of time the economy does not have, the wheels are falling off right now, her latest forecasts are now at 3.5% for 2015 in lieu of 3.8% which means defacto this year will be at best the same as last but we all know that its going to be alot fucking worse.
The avalanche of fraud and lies continues down the hill, nothing is going to stop the credit fuelled growth of the east and the debt ponzi scheme of the west from collapsing.
The end game is nigh, I give it 12 - 18 months maximum.