Lagarde Urges Wealth Redistribution To Fight Populism

Tyler Durden's picture

As we scoffed oveernight, who better than a handful of semi, and not so semi, billionaires - perplexed by the populist backlash of the past year - to sit down and discuss among each other how a "squeezed and Angry" middle-class should be fixed. And so it was this morning as IMF Managing Director Christine Lagarde, Italian Finance Minister Pier Carlo Padoan and Founder, Chairman and Co-CIO of Bridgewater Associates, Ray Dalio, espoused on what's needed to restore growth in the middle class and confidence in the future.

The conclusions of the discussion are as farcical as the entire Davos debacle, as three people completely disconnected from the real world, sat down and provided these "answers"...

As Bloomberg reports, while International Monetary Fund chief Christine Lagarde urged a list of policies from programs to retrain workers to more social spending...

Lagarde said policy makers “really have to think it through and see what can be done” given the feedback from voters who say "No.” Among measures that could be implemented are fiscal and structural reforms, she added.

 

“But it needs to be granular, it needs to be regional, it needs to be focused on what will people get out of it and it probably means more redistribution than we have in place at the moment,” Lagarde told the panel.

 

The establishment academics also had plenty of textbook declarations and jabs to make...

“We need to go to a system where we are protecting workers, not jobs, and society will help people retrain or reorient,” Richard Baldwin, professor of international economics at the Graduate Institute of International and Development Studies in Geneva, said in an interview in Davos. “There may just be a need to man up. We have to pay for the social cohesion that we need to keep our societies advancing, and accept that this may be a higher tax burden on people.”

 

The panel saw former U.S. Treasury Secretary Lawrence Summers attacking Donald Trump saying populism is “invariably counter-productive” for those it claims to help.

 

“Our President-elect has made four or five phone calls to four or five companies, largely suspending the rule of law, and extorting them into relocating dozens or perhaps even a few hundred jobs into plants in the United States,” Summers said.

 

Summers’s recipe for dealing with populism twisted Trump’s campaign slogan. “Our broad objective should be to make America greater than ever before,” Summers said. “That’s very different from making it great again.”

 

He suggested three major steps. First, “public investment on an adequate scale starting from infrastructure” also embracing technology and education; second, “making global integration work for ordinary people” and third, “enabling the dreams of every young American” including education, finding work and home purchasing.

And ironically, the wealthiest of all the panel members was perhaps the clearest...

Hedge Fund billionaire Ray Dalio warned on a panel chaired by Bloomberg Television’s Francine Lacqua that “we may be at a point where globalization is ending, and provincialization and nationalization is taking hold.”

 

“I want to be loud and clear: populism scares me,” Dalio said. “The No. 1 issue economically as a market participant is how populism manifests itself over the next year or two.”

So, to sum up - a bunch of rich, disconnected elites in Switzerland believe the world's "middle class" will be better off if policy-makers "man-up" and increase taxes on the "wealthy" in order to redistribute wealth to the masses to "pay for social cohesion." Yeah, that will work... we suspect echoes of "Four more years" will be heard in 2020 if they follow that path.

Full discussion available here.

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Two-bits's picture

Of course populism scares these cunts. 

 

At the end they all lose their heads.

Bastiat's picture

Christine: write me a check--now!

LowerSlowerDelaware_LSD's picture

FREE $HIT FOR EVERYBODY!!!

It sure has worked wonders for Venezuela.

hedgeless_horseman's picture

 

“There may just be a need to man up. We You have to pay for the social cohesion that we need to keep our societies advancing, and accept that this may be a higher tax burden on people such as you.”

Two-bits's picture

They really see themselves as a separate species. Survival of the fittest.

hedgeless_horseman's picture

 

  • How should a "squeezed and Angry" middle-class be fixed?
  • Is this a real problem?  Or is it another phantom menace?
  • What's needed to restore growth in the middle class and confidence in the future?
  • Do we really want growth, and is confidence in the future really a good thing?
  • Does anyone other than banks really ever benefit from either growth or confidence in the futrue?

We should have a panel discuss these exact same questions and assumptions this June in Marfa.

We could include some middle class people on the panel.  People that actually pay taxes, actually produce goods, and who are not so close to the money printing spigot.  I know.  This is crazy talk.

I wonder what solutions they might come up with.

http://www.zerohedge.com/news/2017-01-10/time-has-come-first-zerohedge-s...

auricle's picture

I'll accept this plan but as an offer of good faith you will have to start with the top .01%. You know, that list that doesn't exist. And I mean all of them(Rothchild,Warberg,Vanderbilts,Carnegie,Rockefeller,Morgan ect. After you've extracted trillions from them, you can hit the mere mortal 1% like Soros, Koch, Buffet,Cargill,Gates etc. 

Creative_Destruct's picture

"We could include some middle class people on the panel.  People that actually pay taxes, actually produce goods, and who are not so close to the money printing spigot.  I know.  This is crazy talk."

Why actually listen to people who have the problem when you are the omniscient dieties who know what's best for them??

After all, the middle class are only the lower forms of life that practice populism.

These people need to take a cue from the idiot in DC who self-immolated and do same, only with fatal burns.

Ramesees's picture

We don't want our feudal lords giving us table scraps, Lagarde.  We want the feudal spoils system, which made you politically-connected dickheads rich, abolished.  Then we can get rich on our own merits.  

bobbbny's picture

Lagarde is a lizard.

No, I mean it, she is reptilian.

waspwench's picture

Definitely has a reptilian look, I agree.

detached.amusement's picture

Excellent idea, we hope to read everyone's conclusions around independence day

sodbuster's picture

Christine! You ignorant slut!!!

MalteseFalcon's picture

If their solution is to tax the upper middle class to fund the lower classes, the plan should be DOA.

BTW were there any middle or working class people on that panel?

Jim Sampson's picture

It's so nice of her to give up all her money.

nmewn's picture

See! That's the damned problem!  

When these assholes start talking "wealth redistribution" they're talking about anyone else's but their own!!!

Creative_Destruct's picture

"...anyone else's (wealth redistributed) but their own!!!"  Bullseye.

These elitist cronies will ALWAYS either 1) find a way to make it someone elses wealth that is redistributed or, 2) rig the game with their crony connections to amp up their own income to MORE than make up for whatever additional taxes they pay.

Crash Overide's picture

Davos is an irrelevent elite circle jerk, where are the villagers with the torches and pitchforks when you need them.

Creative_Destruct's picture

Socialism failed... therefore we just didn't do it correctly or do enough of it and so we need more of it ...classic "expansion by failure."

two hoots's picture

"We need to redistribute the money between the common people before they come after ours"

 
"we could do printing/helicopter money but we will dilute our own worth but as long as we take the lions share of the printing, we will maintain our rightful places"

"tell me about the plague and how that wiped out so many?  I can provide saftety for a few on my island retreat."

"We should get rid of nuclear arms before some crazy ends it for all of us, that is too risky'

"We need to dissuade medical care as it only prolongs their sucking existance, resources are at stake"

"Genome research is threatening, they will only live longer and heathier, we need to step in to manage the results"

"Do we really need those pharmacutical companies finding cures for everything?"

It's time for a break, we'll meet again after lunch and disucss "Yacht Security"

 

"

CheapBastard's picture

These Elite think "wealth redistribution" is taking away from the hard working middle class and handing it to the poor. Zero is EVER taken from the top 1% and "redistributed. Look at SowetoCare; it steals from the middle class and hands it to the FSA.

The news says Soweto is worth $12 million and will become worth $245 million from his speaking tours, so why don;t we see him "redistribute" half of that to the poor?

They talk BIG with YOUR money and your hard work.

espirit's picture

Multi Billionaires - Redistribute all but 1 Billion.

Multi Millionaires - Redistribute all but 1 Million.

 

Works for me.

XRAYD's picture

Where would you like your share, $10.00 to be sent?  Pay Pal?

espirit's picture

To an independent auditing firm that will oversee the decree.

One that has hi intensity lighting. 

brain_glitch's picture

The social cohesion they are destroying! And how do they want to fix it? Taxes. This time it will work, we promise.

espirit's picture

Hummm.... Taxing Populists to redistribute their wealth to fight populism.

I really, really hate Bizzaro World.

FireBrander's picture

Redistribute?

Fuck that!

I say confiscate and electronically wipe it to ZERO!

Start with Soros are all those fuckers sitting around in Davos eating $50 hotdogs.

Seriously, is the world better off, are YOU better off with a system that allows a 8 people to have 50% of the wealth on the ENTIRE PLANET?

Is that wealth benign or is it malignant?

Does the wealth of those 8 men "Trickle Down" on you in form of prosperitity, or is it more like Russian Hooker piss?

Does the wealth of those 8 men "Trickle Down" on you in form of individual freedom, or is it more like oppression and control?

++++

"Eight Men Own Same Wealth As Half The World"

http://www.zerohedge.com/news/2017-01-16/davos-elites-address-populism-w...

++++

 

benign (b?-n?n?) adj.

a. Having little or no detrimental effect; harmless:

malignant [mah-lig´nant]

tending to become progressively worse and to result in death; having the properties of anaplasia, invasiveness, and metastasis; said of tumors.

++++

 

ThanksChump's picture

Fucking communists...

 

Walk out in my yard about 250 meters. I want to check my zero...

 

You don't fix income disparity by stealing from people who gamed the system, you dim fucking thief. You fix the system.

techpriest's picture

Fun fact: that "50%" number is rigged statistics. Basically, a Tibetan peasant and an American college student with no debt, studying engineering, are both considered to be the "same" in wealth terms. Raw net worth perhaps, but it doesn't come close to providing an accurate picture of the situation.

Also, you nailed it with "You don't fix income disparity by stealing from people who gamed the system, you dim fucking thief. You fix the system."

GreatUncle's picture

Yep, popularism is knowing what they imply by their twisted words means though :-)

Exactly as you said it.

Paul E. Math's picture

They always talk about a temporary RE-distribution.  But never discuss how to change the way distribution occurs in the first place.

techpriest's picture

Personally I don't care about income inequality. It will always exist in one form or another, depending on how you cut the numbers.

However, what I do care about is whether someone who wants to become wealthier is able to do so, whether someone with substantial wealth can buy political power, and whether wealth is being acquired by production of real goods (which makes everyone wealthier because everything becomes cheaper), or by stealing the existing goods (less/no production means everyone becomes poorer).

True Blue's picture

Really: discuss among each other how a "squeezed and Angry" middle-class should be fixed. And their answer? Squeezing it even more until they have wrung every last shekel from our families and futures. 

waspwench's picture

Obviously it will create social cohesion if they take even more hard earned income from the middle classes and give it away to welfare scroungers and gimmegrants! Of course it will!

What planet is this woman from? She is a raving lunatic. And they wonder why the UK wants out of the EU. If it isn't working then let's just do more of it. Yeah, that'll fix it.

nope-1004's picture

Liberalism and its socailist policies being systematically voted out in every nation, yet this idiot proposes...... Socialism!

Imbecile!

And for your career, you may want to reconsider swimming against the tide Christine....

FireBrander's picture

So, you're saying, that Socialist Policies have created all of this WEALTH & INEQAULITY?

Socialism creates wealth? Socialism creates a few Super Winners and Lots-a losers?

I thought Socialism destroys wealth and makes everyone equally poor?

WTF? That does not compute:(

LowerSlowerDelaware_LSD's picture

Socialism makes the government and government connected wealthy. Everyone else is poor because the government "needs" your money and uses guns to enforce taking it.

FireBrander's picture

Capitalism doesn't make the government and government connected wealthy?  The government doesn't "need" our money and doesn't use guns to enforce taking it?

Dude wakeup:

A. Capitalism and Socialism only exist in textbooks.

B. The world is run by wealthy, greedy, psycopaths.

C. The "Governments" of the planet are PROXY's  for CORPORATIONS owned by these "wealthy, greedy, psycopaths" that:

1. Take money from the productive.

2. Create money from thin air.

3. "Redistribute" that to the "less fortunate".

4. The "less fortunate" BUY STUFF they COULD NOT BUY, from CORPORATIONS, if the Government didn't give them the money.

As long as billionaires/corporations can "influence" government; there will NEVER be prosperity for the masses.

LowerSlowerDelaware_LSD's picture

I get it that you believe that you are mind-controlled by a small set of "wealthy, greedy, psycopaths." I am not.

We'll just have to agree to disagree on the rest as well.

shivura's picture

or even better.. FREE SHIT JUST FOR THE CORPORATIONS AND BILLIONAIRES.. i'm sure it will work swell for the USA

LowerSlowerDelaware_LSD's picture

Or even better - NO FREE $HIT for ANYBODY. The gubmint has NO business being in the vote buying/money transfer game. If people want FREE $HIT, go to your neighbor or a charity.

espirit's picture

Whoa now LSD, Trump ain't there yet ya know.

In some circles what you just said was treasonous.

LowerSlowerDelaware_LSD's picture

True. Thank allah that ZH will delay the response to the subpoena for my IP address until after Friday...

espirit's picture

It's still not to late for the majority of us here to get that knock at the door.

O'bammy's not done yet.

NumberNone's picture

The 'masses' are not viewed any different or given any more thought than the guy on the street corner with a sign asking for money.  "Just give him a couple of bucks to get him away from the Rolls Royce".

Yukon Cornholius's picture

They just really don't get EROI.

Bubba Rum Das's picture

"Christine: write me a check--now!"

What a bunch of retards for anyone to ever conceive this or believe that such a thing would happen; even w/ the fakery of fiat & digital currency; such an action as just giving it away freely to 'the littlepeople' would completely devalue it....Whatever currency that may be...This is also all about promoting a cashless society & complete political control by the central banks...