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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adr's picture

If you take away the ability to create billions of paper dollars out of nowhere for doing pretty much nothing,  then the world will right itself. 

The stock market fleecing mechanism and those that control it are the problem. 

Yeah without it we might still have a Main Street economy with hundreds of little shops instead of the mega big box retail landscape, but what's wrong with that. 

Oh yeah,  can't be worth $60 billion running a 1000sq ft shop on a corner. 

Gadfly's picture

"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.”

This is idiotic.  You don't take more from everyone, only to give it back to them after the government has taken their unecessary and wasteful cut.  You let everyone keep more of what they have and shrink the government (like eliminating 50% of the C.I.A. and the defense budget), and stop trying to own and control the world through N.A.T.O. and other "organizations," billions a year in questionable "financial aid" to countries that don't need it or deserve it, and too many phony imperialistic wars to count.  That would give you enough right there to balance the budget and give everyone reasonably priced, if not free, medical care.  Time to get these corrupt central planners off our backs and out of our fucking lives.

SpanishGoop's picture

"Populism is a political style of action that mobilizes a large alienated element of population against a government seen as controlled by an out-of-touch closed elite that acts on behalf of its own interests"

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

 

Of course it does you fuck.

 

allamerican's picture

again, shit heads talking their book!  and you pay for it.

god, flush these people already.........

PGR88's picture

DUMBASS - "wealth re-distribution" through the inefficient, corrupt channels of the nanny-state CAUSES inequality, and hence "popullism."

 

 

youngman's picture

and her salary is tax free...lol...

GreatUncle's picture

If I didn't have to look as ugly and have a pussy I could aspire to having a tax free salary.

Hold up ain't that a hookers employment? The failed hooker.

Citizen_x's picture

 

Christine LaGarde and her Davos dignitaries suggest we all download...

the new " Let Them Eat Cake " app for our smartphones .

rocknrollinhoneybadger's picture

Good, let's start with her personal wealth and those others who preach globalism. Just take it and distribute it to all 3rd world nations. Start with Africa.

GreatUncle's picture

Invert the welfare curve lets see how fast western nations empty.

Blankone's picture

From the article:

"for ordinary people” and third, “enabling the dreams of every young American” including education, finding work and home purchasing."

Make no mistake they are talking about sheltering and providing for the ever growing lower class using the money of the middle, upper middle and maybe the lower wealthy people's money through taxes, fees and other means. And not just providing for but doing so at an ever increasing level of comfort and lack of accountability.  I notice a steady increase of 20 somethings using EBT type cards at the grocery store.  People who appear to just be coasting along using the system. 

I have already noticed a growing number of politicians saying every person should have at least two years of college or trade school for free.  That low income housing is degrading and we need to provide people single family homes to give them pride and change their culture of failure.  As if it is racist not to do so.

 

orangegeek's picture

Lagarde was just convicted.  How is this cunt still in charge.  CIA needs to kill this cunt!!!

samsara's picture

The CIA is the muscle behind this whole group.  How do you think they got to where they are?

orangegeek's picture

bullshit - CIA does not work for the EU

detached.amusement's picture

you forget who owns what, or what the statement you responded to really even meant, for that matter.

UnschooledAustrianEconomist's picture

You got to recalibrate your "who controls whom" detector. And yes, EU doesn't control the CIA.

barysenter's picture

"Our society is run by insane people for insane objectives. I think we're being run by maniacs for maniacal ends and I think I'm liable to be put away as insane for expressing that. That's what's insane about it." John Lennon

LawsofPhysics's picture

LOL!!!  There is no free lunch motherfuckers, why not just require banks to be JUST BANKS again!!!!

NO MORE MOTHERFUCKING BAILOUTS!!!!

IF YOU DON"T DO REAL WORK AND FACE REAL RISK YOU DON"T EAT!!!!

fuck these feudalists/sociopaths

It is the fucking "free" money for bankers/financiers/governments that has caused all the problems in the first place.  Remember, this translates into MORE DEBT FOR EVERYONE ELSE!!!!

Kina's picture

What is this populism?

I thought that would have been Obama and the Bush and Clinton dynasties..except the MSM propaganda failed and the disaffected population worked who was really on their side

small axe's picture

populism is like deflation ... it's bad because the "experts" tell us so. Much better that we look to our oligarchy for redemption and don't bother our fool heads over the endless lies and broken promises.

 

Silver Savior's picture

Just steal from the rich when they don't know about it. They already stole from Main Street.

besnook's picture

they fear populism because the last time there was global populism hitler came up with the final solution but he failed. we need better accountants and more efficient means this time. fuck the zionazis. off with their heads.

nakki's picture

So 8 years of the redistribution to the top .001% hasn't worked the way they thought it would?

I almost get chocked up when I hear these altruistic billionaires thinking about the middle class.

 

Vooter's picture

Lagarde, Summers and Diallo: "Is this going to hurt?"

The Hangman: "No one's complained yet!"

small axe's picture

tanning bed with a built-in guillotine ... coming to a salon near you, Christine

Quinvarius's picture

And by wealthy they mean any white guy with a job.  Fuck these aholes.  How the Hell does stealing even more money from anyone taking risks to build wealth enhance growth?  Stop importing low IQ violent, anti-social, muslim terrorists, while expecting everyone else to pay for them, if you want social cohesion.  

I hope the executions are on pay-per-view.

1stepcloser's picture

good lets start with her wealth..

Iamanisland's picture

Interesting - I see a bunch of grifters being papmpered and trying to impress each other with their intelligence.  We need free markets with monopolistic limits and free choice of currency.  These are the leaches sucking off the middle class worker - entrepreneaurs and trying to fix what they break and hinder.

Twee Surgeon's picture

+1 for Grifters. True story.

 

Al Huxley's picture

The 'wealthy' in this case being those just above the middle class - but definitely not the .01% who hang out in Davos.  Lucky for these guys they tend to be fairly well read and educated, so when the mobs show up with the pitchforks, ropes and guillotines at least they won't be surprised.

What's coming probably won't be nice for anyone, but these Davos douchebags have brought it on us all.

TeaClipper's picture

It's that belittling label "Populist" that tells the lie they are trying to peddle. It says that the anti globalist movement, the reaction to mind boggling corruption and endless wars perpetrated upon us by those very people, are nothing more than a passing phase and that the peasants can be bought off given enough time and money. Dont fall for that fucking word, its the stick they are using to beat us with.

The Wizard's picture

“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.

In other words, the control we have over the monetary world has to be loosened a bit to keep the natives happy. Without it our globalist indoctrination won't work.

illuminatus's picture

Blah blah blah.. words. Meanwhile they take away cash and guns.

Watch what they do not what they say.

A. Boaty's picture

Globalists fear isolationism will lead to "begger-thy-neighbor" tariffs.

In that case, what do they call QE? QE only works if one CB does it. Adjust that, you globules.

Vin's picture

Excellent!  Confiscate the wealth of the entire Rothschild cabal including Soros and every other globablist banker.  That works.

yttirum's picture

"Confiscate" corrected to "Repatriate"

Vlad the Inhaler's picture

How can these people be so clueless, populism does not mean wanting the government to be your nanny, populism is wanting the government to fuck off.

Twee Surgeon's picture

These people are in the club that operates the printing presses, what Lebarf means is 'we have to print more cash and make sure some of it gets to the peasants or they are going to make us into collectible lamp shades soon". When you own the printing press and bail out every failing Frankenstein in your club, why do you need an income tax on the Labor ? An income tax makes it all seem legitimate as if we are all co-operating to build infrastructure and orphanages,hogwash.

Taxation is a tool to keep the uppity peasants in their place and if any unapproved peon gets a little too successful they can be taken down for any vague or contrived reasons. They have a printing press and print 'at will' then give the loot to whoever they will, kapiche ?

Bunga Bunga's picture

A corrupt politician and convicted criminal - you can believe her every word.

besnook's picture

posted last night

-----------

what ignorant dumbfucks. ray came close. the last time this disparity in wealth was this wide the gap closed dramatically during the depression. so a severe depression is next probably followed by war because there has to be a huge capacity destruction event to reset. that will be the solution to income equality whether anybody likes it or not.

it is hard to believe summers is an economist.

the plan for avoidance of catastrophe is pretty simple but because of the size of the problem they created, the implementation is very difficult. give labor its fair share of productivity gains. that alone will create lots of jobs.

one thing is sure, and you could see the fear in summers voice, if they don't give the middle access to money with a possibility of success they may pay with their skins like in the thirties and 40s.

RamzaBehoulve's picture

It's fine to take risks to gain more, but no single person needs to earn more than a million dollar per year. And I'm being large here. It's likely even with just 500k$ a year you would already be living the dream in full.

 

If I remember correctly, psychologists already showed the minimum amout of money you need to feel secure and live a good life was 80'000$ per year in the US. Surely, you don't need 6 times that amount.

XRAYD's picture

Madam LaGarde ... on the tax payers payroll to the tune of $500K - tax free and other goodies!

falak pema's picture

Hahaha !

The Lady with the Hermes bag who stifled Greece to bare bones and helped chocolate Ukraine's fake oligarchy beyond the reasonable, even on her own IMFian biased scale, now says at Plutodavos :

"Guys, we've fleeced the sheep beyond recognition. Maybe we have to back peddle.

I don't like Breitbart and Le Pen. I don't like Brexit and refugee trails. There is a red light flashing in my head."

Now this Oligarchy's high priestess says "we have to change the rules ... PRONTO"

She really is an icon of Oligarchy past madness, now scared shitless by the boomerang of debt and protectionist rug pulling; of which the Duck and Lady May are the first guns firing their salvos, announcing Western Union moving to disunion; at Fort Sumter of City's now feared demise as Euro/Eurodollar bankster hideout.

'Cos that's what the Merkel/Duck-May divide means and Brexit is now Sumter.

2017 is the year of the unwind.

Meanwhile at Plutodavos ; the greatest proponent of liberal exchanges is... China... and its Silk route project that is destined to link... BEIJING TO LISBON and is already operational as it brings Chinese products to Lyon is 8 days... and it will be less by 2020.

Will the EU-China alliance that this could spell be the lifebuoy that China offers the EU under the guns of Duck-May Anglo alliance ?

The Asian pivot to regions where the growth is, away from the West more and more divided and lo growth, is now the BIG SIGNAL.

trader1's picture

not only Lisbon.

don't forget the Brits!

The first freight train from China to Britain has arrived in London, completing a 12,000-kilometer journey. The service is part of a push by China to revive the Silk Road trading routes to western Europe.

http://www.dw.com/en/first-silk-road-freight-train-arrives-in-uk-from-ch...

Banker Buster's picture

Lagarde, redistribute your own wealth.  Don't create a problem with your central banking crooks then say "oh there is a problem of inequality, so lets take more money from the middle to upper middle class people."  The inequality was created by easy money central bankers with NIRP and QE which is money going to the top .01 percent and they are getting a free ride.

samsara's picture

"Lagarde, redistribute your own wealth"

No,  the Elite only redistribute OUR money

samsara's picture

"I want to be loud and clear: populism scares me...

 

Said the NON-elected, No Tax on my salary, Elistist bitch.

As well it should you  Cxxx,  You will be lucky not to see a lamp post in your future.

Bunga Bunga's picture

because "evil populism" takes away her free lunch.

johnnyBoy's picture

This from a person who doesn't have to pay income tax on her $350,000 salary.  What horseshit!!!

http://www.dailymail.co.uk/news/article-2151681/IMF-chief-Christine-Laga...