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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SubjectivObject's picture

Fuck them.

There can never be enough tax collection to cover unbridled soveriegn debt financing.

How about a rule of law for everybody, enforcement of anti monopoly law, roll back punitive regulation, and a level playing field for small business.

Christine Legard is one big blood red herring.

Georgiabelle's picture

They just don't get it. The middle class doesn't want redistribution, even if they temporarily become the beneficiaries. They have seen that movie before and know that it doesn't end well, or end at all. It will just make us as dependent on government and the global elites as the rest of the gimme lemmings. We just want government to back off, and let us earn our money the old-fashioned way, without the government constantly coming up with new obstacles to derail our attempts at self-sufficiency. At the very least we want them to stop deliberately screwing us to fund their bribes to the special interest and minority groups that keep them in power.  

Raffie's picture

I can just read the title and know what the LONG NECK of the IMF is saying.

We will take your money and find the best way to use it against you.

man of Wool's picture

Populism is emotive democracy. Thinking with your heart but not your head.

Joe the Pimpernel's picture

Just because you call something "populism" doesn't make it populism.

Just call it an allergic reaction to totalitarian globalist oligarchs. 

WillyGroper's picture

education...yea this slime has done a great job hijacking that.

so great they believe the crap they're trying to sell.

"rule of law"  that rat thar is the funniest of all.

round up these adrenochrome addicts, give a hoe & some GMO seed, put'm on an island with shark infested waters & give'm a taste good n proper!

papillion bitchezzz.

sgt_doom's picture

Sgt. Doom urges guillotines to fight LaGarde and her cohorts!

Yen Cross's picture

 La Guarde is a scumbag fraud!

GreatUncle's picture

Ugly too but not PC to say that.

E.F. Mutton's picture

Too bad she's a protected species.  She'd make a great suitcase.

Two-bits's picture

Just wait till the oh-fuck-o-meter hits 8 or she says sometching she can't unwind...they proved with DSK that they will replace anyone they want.

Yen Cross's picture

 She sleeps with Kissinger.  They have a 'lava lamp'.

Ignatius's picture

Easier to skin than a Trump... that coveted, fine orange leather.

espirit's picture

The original 'Orange Cheeto'.

GreatUncle's picture

Popularism is basically you can keep stealing like you have without consequences.

King Tut's picture
King Tut (not verified) Jan 18, 2017 1:09 PM

Another NWO stooge

Ignatius's picture

Headline: Lagarde urges populism to fight populism.

hmm... So she's saying, "You can have populism, but we will still be in charge?"

Whatever it takes to save the central banks usury system, I guess. 

Pop always said life is full of riddles, or maybe he was talking about Don Rickles, can't remember.

Bastiat's picture

I can never look at her the same after Banzai put her head on the bony woman in the crazy nude scene with Merkel.

williambanzai7's picture

Coming from one who  pays no taxes...yet is keen to see Greeks pay through their noses.

King Tut's picture
King Tut (not verified) williambanzai7 Jan 18, 2017 1:07 PM

The Greeks don't pay taxes and are lazy as fuck. The work output of 10 Greeks is roughly the same a that of 1 German.

Soul Glow's picture

Yet work more hours/week than the French.

barysenter's picture

In France its the law that you have to hire muslims. You can't fire the lazy incompetent fucks and you can't hire more help to bring the crop in before it rots in the field. Paging Ayn Rand, France has reached peak Mooch.

Muse minus Time's picture

Davos has the full CGI bias flashing their shark teeth...

Dr. Engali's picture

Good. Let's start with her. Get rid of the fed, the IRS, scrap the income tax, and tax the crap out of the land barons.

MASTER OF UNIVERSE's picture

'Populism' is Fascism relabelled so that the Fascists are made to appear normal, Dalio, you fucking RETARD dipshit FUCKWAD!

Vageling's picture

Don't forget to put an hat on your ass. Having a Krugman moment here? Sure looks like you do.

hangemhigh77's picture

Vlad, save the world and drop a micro-nuke on this place.

Lady Jessica's picture

Progressive income taxation works, but only when the richest do not have the means to evade it.

 

Anopheles's picture

No, it doesn't.  You can't increase properity by taking from those who have and create economic benefit. 

https://youtu.be/661pi6K-8WQ

Lady Jessica's picture

those who have and create economic benefit

Why are the richest people more likely to be in this group?

espirit's picture

I have answers...

But none fit to print for fear of violating TOS.

barysenter's picture

Thats bankster bullshit. Kleptocrats don't create economic benefit. Hang all the lawyers.

Things that go bump's picture

What are you talking about? It worked fine for the US for years. Frank Sinatra used to brag that he was paying 91% and still lived the jet set life. It prevents someone like Warren Buffet from amassing the sort of monsterous fortune that permits him to buy political influence and purchase laws favorable to him amassing even more. At the rate we're going someone is going to win king of the hill and own the world. 

Blankenstein's picture

How about cutting the size of all governments?  Big government enables all of this corruption.

Yen Cross's picture

 Laguarde  reminds me of this>

Dominique Strauss-Kahn - hotel maid rapist
hangemhigh77's picture

It reminds me of this,
Emails from Wikileaks of Podesta boning little boys.

GreatUncle's picture

Dominique Strauss-Kahn - think he put the frighteners on the elite when he started to want to discuss the impact of technologies and the number of hours of work in the world. Taken out very quickly after that.

Does not mean it went away, if anything what he was saying became the reality in the 94% Obama part time minimum wage jobs and the same in alot of other countries.

Soul Glow's picture

How about I just don't pay taxes this year.  That should get me 1/3 of my wages back.

hangemhigh77's picture

Let's all listen to what some twisted tranny psycho cunt bitch has to say, I give you Christine LaFart.

Budnacho's picture

Can you smell the fear coming from these fucks?

Joebloinvestor's picture

People think the Kards are bad.

espirit's picture

Yeah, they got The Don elected.

I heard it on the MSM.

Anopheles's picture

In the words of Margret Thatcher:   Socialism is wonderful until you run out of other people's money.....

You need to watch this video to put things into prespective.   Eat the Rich   https://youtu.be/661pi6K-8WQ  (starts about 2:20) 

Dg4884's picture

Should'nt this bitch be in a Turkish prison?

OOOOOhhhhhhh Billy...

rocknrollinhoneybadger's picture

No Dg, because in the west having a vagina means you are always a victim. 

hangemhigh77's picture

I think that all these motherfuckers can basically eat my ass. How about we hang them all?

UnschooledAustrianEconomist's picture

Patience, young padawan, patience.

barysenter's picture

How quaint. The "progressive" wants to maintain the status quo by more bread and circuses. 

https://www.youtube.com/watch?v=s5rtV8nDScc