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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rondellio's picture

Good point, I'd forgotten that.  This came out when she complaines about Greeks not paying their taxes!

Bwana's picture

They still don't get it. They still believe their money runs the world and to a small segment of workers it does. The biggest problem is the combined taxes of the various levels of government. The accountant I use tells me I pay over 60% of my total income to the various levels of government and government agencies that have the power to tax by raising fees. When government workers make almost twice what private industry workers make per hour with virtually lifetime jobs regardless of performance the system is broken. Every year the federal government quietly hits us with the biggest tax which is inflation. During the very soon to be over Obama years the US dollar declined from being worth $.03 to being worth $.02 in 1900 dollars. In that 8 years alone the people got a 33.3% tax on top of the federal, state and local levied taxes plus the out-right agency taxes, hidden agency taxes and sales taxes. Then the same oppressors complain that the "people are not having enough children' (slaves) to fund their ever increasing need for money from the people who now look at an ever declining standard of living caused by taxation and inflation of the currency. While at the same time they raid pension funds and any other body of funds they want. Now they have the balls to suggest imposing a cashless financial  system on the people so they can control every cent a worker spends and at the same time have the power to take whatever government wants electronically from their accounts.

Grandad Grumps's picture

The elitist people who have gained their power by defrauding and stealing from others have no clue about many things.

A. They do not understand the nature of charity. They haven't a clue. They seemingly believe that giving away money that they will never have any practical use for so that they can gain power over those who accept their charity and pump their egos and image and gain tax advantages IS NOT CHARITY. Charity is all about the heart. It is about giving, not just money, but giving opportunity, independence and respect to others with no thought of anything in return.

B. They seemingly have no understanding that: Good cannot be achieved through evil acts; the end does not justify the means; the journey is more important for the soul than the destination; dominance and control over others is evil; taking advantage of others who have less power than you is evil; what one thinks and does says more about a person than what one says.

The elitists have seemingly decided that because they have power separately and together that it is right and just for them to be in control. But righteousness and justness is using that power to give power to others, not to be miserly about it or only grudgingly giving pieces only to those who kowtow to the club and agree to their rules. To me, they are a degenerate society who have little conception of what the full capability of humanity is and why it needs to be preserved and nurtured. IMO, they are unworthy of the power given to them because they do not see it as a responsibility.

CosmicSauce's picture

They should be very scared, seeing how killing the rich is the most logical choice for a proper reset.

Good Humans want education and fairness.

We've no more room or tolerance for shitty people.

Grandad Grumps's picture

The wealth of creation, including knowledge, is literally infinite. By artificially constraining its size and distribution, the elitists constantly work against humanity and creation. They think "I am better because I have more money and power". In reality they are a degenerate group, undeserving of that wealth and power.

TeaClipper's picture

Unfortunately for them they wont get it until some of their number expire from pitchfork wounds. It was ever thus.

beijing expat's picture

Maybe when the angry masses roll out the guillotines the clueless elites will begin to understand what is driving populism.

sosoome's picture

"The peons are getting restless. Let's throw a few more trinkets at them so they'll settle down."

yttirum's picture

add: As long as we still have full control...

skeelos's picture

Socialism is a Crime Against Humanity and should be treated as such.

Grandad Grumps's picture

Really, the laws need to be re-written that allow financial wealth, for the very wealthiest (such as trust funds and free equity ownership) to be permanent.

There is no excuse for an elitist CEO to make 2000 times as much as the people who create the wealth... and then to shelter that wealth so that it can never be touched.

Gorgeous's picture

"We have to pay for the social cohesion that we need to keep our societies advancing.."  Like Georgie is doing with Democratic Socialists of America, and #DisruptJ20.  Very cohesive.  The WEF viewing is like opening up your cellar after being gone a year and looking at the well-fed rats acting every bit like they own the place.  But it is acting.  They go to parties afterwards and joke about "hey, did you like my 'social cohesion' line"?  "Yeah, nice, did you make up that riff yourself?".  And, "what did you think of my 'populism scares me' bomb?  I shook my knees like I was trembling and even had a tear in my eye.  That's hard to do on camera."  "You did it again Ray, you the man".  No one could be a true believer of this horseshit.  I wish we could find how the $$ get into these guys pockets to pay for keeping up the front.

Apocalicious's picture

Populism bad, redistribution good. But I thought redistribution was a kind of populism, no?

I'm so confused...so thankful for the smarty smartpants geniuses that run everything.

Aaaaaaaaaaaaaaand back to Lardassians...

Pissedman's picture

Disconnected..., two of these people are abject failures, Summers and Legarde. They still have not learned from the most basics of economics, people do not like to be told what to do and direct government payment will destroy the economic system. When the pilgrims were forced to work to provide food for everyone, the younger men complained that they were doing most of the work while the others were lazy, then they were lazy as they coould not enjoy the fruits of their labors, the colony then starved. When the same men were given a plot to manage as they wish, they flourished. When Venezuela took away company holdings, the companies stopped producing, when they institutued price controls, the farmers stopped growing, now they are starving.

How many more times do we have to repeat these mistakes? They want to control what we eat, breathe, inject into our bodies, where we live, how we live, what we can purchase with our money and control our money our water. The more they try to control the more blowback there will be as their control efforts expose them for the fascists they are. It's pretty much the bankers who need to be challenged, let's hope Trump and Putin take them out after they take out ISIS.

Kulafarmer's picture

I hope these elite socialist turds plan on redistributing the wealth of the upper crust,,,,,
Yea didnt think so,,,

Batman11's picture

There used to be first world and third world nations.

First world nations used redistributive capitalism to provide subsidised housing, healthcare, education and other services to make life easier for those lower down the scale.

Third world nations have a few rich people and most live in poverty, they were normally horribly corrupt.

We took away the things that differentiated first world from third world nations and the first world nations started to look like third world nations.

It’s not rocket science!

 

ChangeSeeker's picture

First World was for consumption.  It has failed.  The system is bankrupt.  Time to change.

SweetDougisaTwat's picture

It's time again for a nationalistic Germany to rise up and invade your country.  A little "Heil" somebody or other will occupy your time and interests.  You'll forget all about a "higher tax burden" that you so matter-of-factly wish upon me.  You ignorant cunt.

rondellio's picture

An ex con, who happens to be head of the IMF,  opining on how to handle the little people.

Farmers speak with more respect about their livestock. 

novictim's picture

"...and once we have conquered Populism we can then turn our efforts on destroying the real enemy: 

The Orgasm.

The War on the orgasm must eventually become our central focus if we are to win this fight!"

- IMF Managing Director Christine Lagarde

Meanwhile, the reality is that Populism is as much about saving Europe and European from Islam as it is about anything financial.  Why these Brussels bureaucrats can't see that is a mystery.  Or maybe they just dare not acknowledge the real concerns of their citizens for fear of falling into a deeper analysis of what it is they have wrought on future generations: Lebanon style sectarian violence with Islam on one side and all the rest of humanity on the other.

onlooker's picture

Wealth Growth 101

  1. Genocide of the White Middle Class with increased  inflation, so that Property Tax is increased to keep up with inflation, but incomes are reduced. Guess who end up with the Biggest Treasure/Assets of LAND AND HOUSES. You got it, the Rich Bitch Bastards.

0. Genocide of the White Middle Class to decrease the anti-radical liberal voter numbers.

  1. Genocide of the White Middle Class by increased censorship of News, Propagandistic Education of children, and Destruction of any non-Left Ethics Structure.

Join my 666 pushback against the Tyrannical Rich Bitches and  donate $6.66 to ZH to support those who support us.

Trogdor's picture

Note to Billionaires:  We don't want your fucking money or your fucking ideas and we don't want your fucking taxes.  We want you OUT of our lives- GONE - go live in a chalet on the Moon with your sycophants and drink baby blood or whatever it is you do to get your rocks off ... and leave us the fuck alone.

Like I said before ... what great gift to the world one MOAB would be at the right place and the right time.

Umh's picture

If they were to follow this advice they would end up destroying what is left of the middle class. Being middle class is more than having a middle class income. Being middle class is earning that middle class income.

norecovery's picture

In Lagarde's "come to Jesus" moment, she advocates throwing some crumbs to the masses to avoid revolution. I guess the circusses are not entertaining enough to satisfy empty bellies.

yttirum's picture

Difference between these fucks is passion vs. hysteria. The elites don't understand passion, so they have to box up what they don't understand and put a label on it, so they are comforted with their lack of intillect. Most of them don't even understand that they do this.

Mimir's picture

Stop showcasing your hysteria, then.

hooligan2009's picture

yet another example of a failed libtard clinging onto an historic paradigm THAT HAS FAILED.

lagarde is a politician that would be in jail for corruption that she has BEEN FOUND GUILTY.

aside from that - she canot see that she has been part of a populist movement of the last 30 years THAT HAS FAILED.

the key metric has been RISE IN DEBT TO FUND WELFARISM AND CORRUPT PAYMENTS TO ELITES.

in other words - ELITISM IS A FORM OF POPULISM AMONGST THE ELITE.

now, can anyone prove to me that providing welfare payments to those that deserve welfare, does not simply encourage welfare FRAUD AMONGST THOSE THAT DON'T DESERVE WELFARE.

if you are a libtard, you do not have common sense, nor do you have the ability to develop a solution that does not involve INCREASING DEBT THAT STEALS FUTURE TAXES - and hence future government services.

LAGARDE IS A DYING GECKO THAT HAS SHED ITS TAIL IN AN ATTEMPT TO ESCAPE PROSECUTION FOR BEING AN ELITE POPULIST.

Sequoia's picture

These people are not rich.  JP Morgan could pay off the entire debt in the 1920s and still be a billionaire.  Bill Gates can't make the minimum monthly payment on our debt.  Hell he could only put a down payment on student loans!

Mimir's picture

Of course they are rich ! But, surely, it is not their personal wealth, which can solve the problem for those in society who are poor.

It is not the 0.001% that can pay. It is maybe the 20% with the highest family incomes and largest wealth, that can help contributing more to the survival of our society and the livelihood of the 40% poorest. 

That's what the rightwing Christine Lagarde is referring to, and she is right. Look into the historical experience of those countries in the world with traditionally lowest inequalities: The Scandinavian countries. No commies around ! 


ChangeSeeker's picture

The richest have understood OUR message - with Brexit and Trump.  We want chnage.  No more 0.01%ers.  We want more equality in the world, we want our nations safe.  No more power only in their hands.  We want to control our lives as well.  Our governments are OURS, not theirs.

Mimir's picture

Surprise, surprise, I agree with you, but why can't you admit ,that it is impossible seriously to believe, that such change could come from a bunch of American billionaires with a guy like Trump as President or from a group of oldfashion British conservatives.

The change will come, but it will come from elsewhere. 

homiegot's picture

This leathrbag's time is almost up.

pippi68's picture

We don't want the elites to keep us trapped on welfare... we want the opportunity to EARN our living ourselves and be free to make our own choices!

These people are woefully out of touch!

Mimir's picture

Most have jobs and do not live on wellfare. They want higher salaries and job protections.

I'm sure you agree !

pippi68's picture

I'd rather have no taxes, actually. I'm skilled enough I don't need job protections. If this one doesn't work out, there's plenty of others waiting in the wings. I only need salary enough to support my fairly simple lifestyle and provided it's not taken from me in taxes and given to people doing nothing, I don't really covet more.

tribune's picture

wealth distribution: let the markets find their own level, remove central bank stimulus, get rid of central banks and return to the classical gold standard or the bitcoin standard

moneybots's picture

  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.

 

Globalism obviously isn't working.

Bryan's picture

These myopic people have no idea what they're doing, nor even what their job really is.

BitchesBetterRecognize's picture

"Wealth Distribution"........ hmm

wasn't those two words the bedrock of Obozo's vision for USA when he first got elected? because we now know Wealth Distribution in those fuckers minds only mean Wealth "REALLOCATION

 

savedeposit's picture

It is the

Wealth Redistribution

That me a populist !

fucking socialists !!

headless blogger's picture

Larry Summers was there. Enuf said.....

Bloodstock's picture

So what they said was,,,so since our intentions worked to fuck the middle class, let's fuck them over some more and tell them that we are not fucking them. There, that should do it. Just keep denying the obvious.

messystateofaffairs's picture

Good one there Lagard. Spoken like a true ivory tower jackass that has never earned a real dollar in the free choice market. Take away more wealth from struggling producers (thanks to morons like you and the thieves that animate you) and give it to the snowflakes so those dumb fucks will love and defend your shitbird redistributionist (mostly to your theiving masters) ideas.

One little problem, if we don't create wealth, you don't get none to steal for yourselves and bribe useful idiots with, and printing that toilet paper you call money only works for so long.

ChangeSeeker's picture

Very well said, messy...  This is important and URGENT.

RattieNomNom's picture

AND NOW IT BEGINS!!!

 

THEY GONNA TAX THE SHIT OUT OF LOCAL CONSTICUENCES NOW!!!

indygo55's picture

How about get rid of the privately owned Central Banks that strip mine humanity and squeeze every last drop of productive energy from the population? How about making money backed by assets instead of debt. I know, I know, then how will they stay rich? Its a tough call but they need to make it. Their system worked in the middle ages but in the Internet age its just plain obsolete. We don't need them. They need us. Capishe?

I am on to you's picture

To restore trust, in the money changers?its like force people to listen to Don Bono,s music night after night!

So the capitalist of the planet now cares about the midlle class,and not a word about the ones,who dont have anything,the what is they called,the underclass,sure the experiment went well,bring in Edward B for a nobel price of manipulation.

This shit aint for real,8 people has more than the half planet and they think,if thats what they does, think,they can solve this, by selling more of the same crap.

 

 

By the way,there is nothing wrong by taxating,its just the wrong people being taxed,tax the hell out of everyone who have over a million,thatll shake em over in Davos,and think twice before the pay 40 dollars for a Hot D.

 

Seems like, Lastrade has been smoking to much of the Torch of Inequality,she looks like, Dorian Gray,s picture,ugly as hell and corrupt,but she dinnt talk about how she escaped justice.

 

But,again,its just another day of misinformation,by the owners of the world,comeon,Trump that Sherlock,tommorow this all forgotten,in cirkling the drain for another blow of nothing:

Everybody counts or nobody counts!Tunnel rat?

Meet ay all at Bilderberg 2017,to discus,what was discused at the Davos!

Sid Davis's picture

It is governments, messing with the free market that produced a distribution of wealth that makes the world look like one big slave plantation, with the owners possessing most of the wealth and the overwhelming majority in or heading to poverty. When the laws are rigged to favor the few, is it any wonder that the few wind up with most of the wealth?  Freedom is what produces a normal distribution of wealth with the average man having an average amount of wealth.  Too bad we don't have free markets; we have regulated markets (government controlled markets). And we have a massive amount of plunder by government with the plundered wealth then going to politicians, bureaucrats and friends of those in power.

Populism is simply a peaceful rebellion against our masters.  It won't work because what this asswipe, Lagard, is suggesting is more government control which means less freedom.  A different form of slavery is not the cure for slavery and the related skewed distribution of wealth.  Freedom is the cure for slavery, and freedom is something we must take because very few of the ruling class are willing to give it to us.  Just sit around and watch what happens when enough people realize that they have less to lose by revolting than they have to lose by going along to get along. 

 

burocracy's picture

makes as much sense as getting into a nuclear war over peace.

ipso_facto's picture

Gee, the Establishment advises that 'more socialism' is the solution.