Live From Davos: Ray Dalio, Christine Lagarde And Larry Summers Discuss How To Fix The "Middle Class Crisis"

Tyler Durden's picture

How do you know with certainty that Davos has not only jumped the shark, but has become a parody of itself? One answer: when you have a handful of semi, and not so semi, billionaires - perplexed by the populist backlash of the past year - sit down and discuss among each other how a "Squeezed and Angry" middle-class should be fixed.

As Davos puts it, "once the lynchpin of developed economies, it’s now threatened by job losses and stagnant wages, paving the way for the rise of populism. In emerging markets, middle class growth rates are stalling. Have middle class problems been forgotten?" It asks rhetorically "What can be done?"

Apparently the answer is to have three people completely disconnected from the real world, sit down and provide "answers.":

In this session, starting at 0800 GMT, IMF Managing Director Christine Lagarde, Italian Finance Minister Pier Carlo Padoan and Founder, Chairman and Co-CIO of Bridgewater Associates, Ray Dalio, discuss what's needed to restore growth in the middle class and confidence in the future.

And then they wonder why the annual Davos echo chamber boondoggle has become not only a global farce, but a symbol of everything that is wrong with globalization today...

Watch it live below

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Arrowflinger's picture

Exactly. 75 million Baby Boom demographic met an Era if overarching  fraud.

HopefulCynic's picture

This people do not hide it anymore, they just skew their intentions in order to decieve people in to beleiving they want peace and end poverty in the wiorld through globalisation. They fault people the populus for what the populus ants and demand, fucking elitists, your time will come to an end, and you will have to meet God, and probably serve the devil for eternity. 

BennyBoy's picture

 

The world's debt based monetary system creates these crises on a regular basis. The math makes it happen. Even these idiots can't change that.

Time for a new, transparent, non-debt based monetary system.

Derezzed's picture

When the traitors responsible for the death of the Middle-class talk about ... how to fix the middle class crisis.
This is a mockery and the bullying goes even further.
Time to bring on the ropes !

new game's picture

sharing some of the profits might make a headway towards the middles income.

quarterly bonus/profit sharing based on results. oh, yea, we are talking about sociopaths.

NOT...

 

rrrr's picture

Really there is only one way. Individuals who are thought of as being members of the Middle Class must do what is necessary themselves. The middle class is not a goal in itself but only a step on the way to better things. Or worse things, if you depend on government to give other people's wealth to you.

JRobby's picture

They should not mistake what is a wave of enlightenment where the gut sentiment really wants to seem them in prison or dead for "populism".

Miscalculating 

Dugald's picture

 

Nah! Bring back the French Revolution......

GoldenDonuts's picture

Larry how about you stop stealing from the middle class.  That would help us out immensly.   Or continue to ignore until pitch forks, torches, and guillotines make a reappearance.

turnball the banker's picture
turnball the banker (not verified) Jan 18, 2017 3:16 AM

Their scincerity touches me

static's picture

"Where the idle grow eloquent over the dignity of labor."

Oscar wilde

 

TheVoicesInYourHead's picture

Is that the same "Laggard" who was recently criminally convicted?

Is that the same "Laggard" who created Frances' mammoth unsustainable national debt?

Is that the same "Laggard" who gives fake tans a bad reputation?

Hmmmm.....Is he the best person to dole out "advice" on how to fix things?

Dude looks like a lady!

LA_Goldbug's picture

It is the same "Laggard" who is NOT in Jail.

SoDamnMad's picture

This is the Lagarde, who by the way is paid $467,940 per year plus $83,760 for expenses – all tax-free.

This from over a year ago so she probably got a big bonus and salary increase. 

Dig Deeper1's picture

Is this the man who... wrecked the buffet at the Harrow club this morning?

Sorry, couldn't help myself.

Yen Cross's picture

   This is " Rich". 

 

Al Gophilia's picture

Stop farming us would be a start. Take away their ability to enslave us though never-ending government borrowings, that would be a  start. Stop making us pay for the livestyles of the bureaucratic and banking elite and for the cost of bribes they extract from us, paying for the promise the make dole recipients each election, that might be a start. End the FED and its underpinning tool of extraction, limitless credit creation, that would solve it as well. Get the fuck out of our pockets and out of our lives, you theiving, murderous, fraudsters and con artists. End the Fed. 

HopefulCynic's picture

I do not disqualify these people from speaking and providing workeable solutions because of their disconnect, they could have the answers besides that or because of that diconnect.

 

The reason I disqualify them is because they are self serving people, that do not give a shit about the disparaging economic inequality in the entire world. 

 

Oh God I really dislike Summers he is a very Evil Socialist SOB, he may be disconnected and deluded, but he is informed and he lies non stop, promoting his unacceptable agenda. 

 

Yes Pedoan you have no vision, you've never had it and never will, because your plans are set on an unachievable, unpractical and unreal goals. You start with goals and no vision, just fairy tales focused on your niche, your desires are empty of vision because of that, and unless you build from reality you will never have a vision, ever. 

LA_Goldbug's picture

Majority do not get this,

"The reason I disqualify them is because they are self serving people, that do not give a shit about the disparaging economic inequality in the entire world. "

Grumbleduke's picture

the solution is a hellfire missle right about now!

akrainer's picture

How did that scumbag Summers get invited to this round table?

The way he "fixed" the middle class crisis in Russia in the 1990s should be classified as a war crime.

Are these Davos people really so completely tone deaf?

rfoland's picture

Agree. Summers a scumbag suckup. Insufferable. He's a clever guy but seems a bit out of touch here compared to other panel.

Batman11's picture

The proof is in the pudding.

The current EU is an epitaph to a set of failed ideas, knock it down and build a new democratic version.

The Euro-zone fully demonstrates the farce of today’s ideas, it was implicitly designed to leave economic management to a technocrat elite.

The unelected ECB and EU Commission make all of the economics decisions.

Even the design of the Euro had this aim at its heart.

“The putative “father of the Euro”, economist Robert Mundell is reported to have explained to one of his university of Chicago students, Greg Palast: “the Euro is the easy way in which Congresses and Parliaments can be stripped of all power over monetary and fiscal policy. Bothersome democracy is removed from the economic system” Michael Hudson “Killing the Host”

With that bothersome democracy removed from the economic system and all the power residing with unelected technocrats it manages to be one of the worst performing economic areas in the world.

Elites always think they know what they are doing, when they make a complete hash of it, democracy allows you to get the old lot out and get a new lot in. 

Zapporius's picture

Ok, I'll knock it down. Here, hold my hat.

JailBanksters's picture

That's pretty amazing

They actually admitted there's a problem ...

But will they admit they created it.

Batman11's picture

With secular stagnation we should all be asking why is economics so bad?

Keynesian redistributive capitalism went out with Margaret Thatcher and inequality has been rising ever since (there is a clue there for the economists amongst us).

How did these new ideas rise to prominence?

“There Is No Nobel Prize in Economics

It's awarded by Sweden's central bank, foisted among the five real prizewinners, often to economists for the 1% -- and the surviving Nobel family is strongly against it.”

“The award for economics came almost 70 years later—bootstrapped to the Nobel in 1968 as a bit of a marketing ploy to celebrate the Bank of Sweden’s 300th anniversary.” Yes, you read that right: “a marketing ploy.”

Today’s economics rose to prominence by awarding its economists Nobel Prizes that weren’t Nobel Prizes.

No wonder it’s so bad.

Global elites can use all sorts of trickery to put their ideas in place, but economics is economics and if doesn’t reflect how the economy operates it won’t work.

Secular stagnation – what more evidence do we need?

http://www.alternet.org/economy/there-no-nobel-prize-economics


 

 

Batman11's picture

Mankind first started to produce a surplus with early agriculture.

It wasn’t long before the elites learnt how to read the skies, the sun and the stars, to predict the coming seasons to the amazed masses and collect tribute.

They soon made the most of the opportunity and removed themselves from any hard work to concentrate on “spiritual matters”, i.e. any hocus-pocus they could come up with to elevate them from the masses, e.g. rituals, fertility rights, offering to the gods …. etc and to turn the initially small tributes, into extracting all the surplus created by the hard work of the rest.

The elites became the representatives of the gods and they were responsible for the bounty of the earth and the harvests. As long as all the surplus was handed over, all would be well.  

Later they came up with money.

We pay you to do the work and you give it back to us when you buy things, you live a bare subsistence existence and we take the rest.

Nothing really changes.

“All for ourselves, and nothing for other people seems, in every age of the world, to have been the vile maxim of the masters of mankind.” Adam Smith, The Wealth of Nations

BitchezGonnaBitch's picture

How to fix the middle class crisis? Easy - get out of the way!

Rabbi Chaim Cohen's picture

Yep, only that will never happen. These people aren't satisfied to sit around partying all the time, (which is all that most of them are qualified to do). They are CONVINCED of not only their superiority but their indispensability. They are so disconnected that they feverently believe that society would instantly implode into barbarism without them. This is sociopathy and narcissism, PSYCHOSIS. The globalist elite would never conceive that it is THEIR OWN actions sowing the real seeds of chaos into civil society, nor would they EVER entertain anyone to explain why their ideas are so flawed. They are utterly detached from reality, and incapable of returning to it.

Batman11's picture

The main problem was Western elites didn’t understand free trade.

Davos essential reading – the Corn Laws and Laissez-Faire

It’s all about the cost of living.

The minimum wage is set by the cost of living and needs to be the same in West and East for free trade.

The US has probably been the most successful in making its labour force internationally uncompetitive with soaring costs of housing, healthcare and student loan repayments.

These all have to be covered by wages and US businesses are now squealing about the high minimum wage.

US (and all Western) labour has been priced out of global labour markets by the high cost of living.

Hence, Trump and protectionism.

Rabbi Chaim Cohen's picture

The problem is that you're assuming that these folks would actually engage in an earnest conversation to debate the merits of two opposing viewpoints or philosophies. They won't, they're right, you're wrong and how dare you speak to them?! Peasant!

wisefool's picture

Larry just said that populism hurts the people that vote for populism.

Rabbi Chaim Cohen's picture

It is rich how these folks will march proudly holding high the banner of "DEMOCRACY", but then denigrate vulgar POPULISM, which is exactly the same thing under the hood.

It's called sophistry and it is a disease that needs to be eradicated.

Batman11's picture

Today’s ideologue elite, who are quite silly contrary to their own rock solid belief in their own intelligence.

2008 – wasn’t a black swan.

Today’s economics is not that modern and has been used before in the early 20th Century, both times it encouraged an absolute faith in markets that led people to stand back and leave the markets alone.

Both times it led to Wall Street Crashes, 1929 and 2008.

It seems to be more of an ideology today than it was the first time around.

“Stocks have reached what looks like a permanently high plateau.”Irving Fisher 1929.

In 2007, Ben Bernanke could see no problems ahead.

Their beliefs were based on an absolute faith in markets based on neoclassical economics which states markets reach stable equilibriums.

Same problem, nearly eighty years apart, let’s see how Irving Fisher and Ben Bernanke handle it.

Irving Fisher looks into his mistakes and in the 1930s comes up with a theory of debt deflation. Hyman Minsky carries on with his work and comes up with the “Financial instability Hypothesis” in 1974. Steve Keen carries on with their work and spots 2008 coming in 2005.

Irving Fisher learnt from his mistakes and came up with a theory that later predicted the same sort of event next time it happened. Unfortunately, all this occurred out of the mainstream of economics and no one took any notice of Steve Keen’s warnings.

Ben Bernanke attributes 2008 to a “black swan” and learns nothing.

Neoclassical economics, in its second coming, has become an ideology.

First time they realized it wasn’t working and came up with a New Deal.

The second time they just blindly carried on until the electorate got fed up and voted for Trump.  

Actually, even the first time, I think the common sense electorate had to kick out the elite who were stuck in their failed dogma.

Any elites sticking to their failed dogma of neo-liberalism and neo-classical economics are for the boot by an electorate looking for change and if that change comes in the form of Trump or similar, that will just have to do.

Batman11's picture

If you want to see what Steve Keen saw  ……

US money supply leading up to 2008:

http://www.whichwayhome.com/skin/frontend/default/wwgcomcatalogarticles/images/articles/whichwayhomes/US-money-supply.jpg

M3 is going exponential and the black swan is coming.

Money = debt

A credit bubble is forming; when it goes exponential it’s going to blow.

Tell Ben if you see him, what a silly old ideologue.

wisefool's picture

exactly. All the guests are saying that

-poor people don't understand how to have good lives, so we need to globalize them.

-middle class people don't understand how markets and investing work, so we need to take their jobs from them.

-the rich are going to have to "put up" with populism for a couple of years, even though it scares us so much.

- We are are still recoving from the financial crisis of 2008, and it was not the fault of the elites. It was the fault of the proto-populists, the poor and the middle class. We, the elite,  just did not realize it at the time.

Sorry, I am normaly better at transcribing these 70 I.Q. PhDs, So yes, tl,dr crowd should watch your videos.

besnook's picture

actually, except the brazilian guy, who doesn't see a problem and padoan who clearly thinks it is a mistake to dismiss populism as a problem and not part of the solution the other guys are very afraid of the people. that fear needs to be leveraged maybe to the point of making them fear for their lives if they don't respond.

wisefool's picture

They concluded with panel with larry and the "hawkish" american agreeing they are personally scared to death of populism. Both leftist (Bernie) populism and rightist populism (trump)

Did they think running a heglian dialectic media and taxation system would not end up exactly as it has? In places like Australia, voting is compusory. I say that everyone: especially these elite economists, should have to prepare their own tax returns. Then maybe they might understand how they can not acheive some great unified economic pardigm while forcing people to fight each other over wedge issues.

I am still not getting the critique of their romper room right, but since the beginning of time people instinctivly try to make the best 60-80 years of life they can. That usually involves regional cooperation with free will. These douche nozzles still worship Keynes, hence all the talk about NATO, Bretton Woods, etc being the right way to advance globalism to prevent WWII from happening again. Hayek said something to the effect that "Every nation will have enough guns and tanks (deterance) to prevent future wars but we will have nothing to eat ..."

Along those same lines, it is fitting to see them freezing their asses off. can't fix stupid.

Dancing Disraeli's picture

They won't.  This is the well-heeled version of 'Never expect a man to understand something when his livelihood depends on him not understanding it.'

Yen Cross's picture

   Davos gives me constipations.

DEMIZEN's picture

I am not sure why is someone that is not a member of "the middle class", fixing the "middle class problem". what does a convicted criminal lagarde know about being "middle class"? Isnt she supposed to be in prison?

gespiri's picture

This is a JOKE!!  Let the people from the middle class fix the middle class.  All these loud mouths will just try to fix their upper class by stepping on everyone else's heads.

Batman11's picture

The impoversihed middle class, how did that happen?

It was part of the plan.

Francis Fukuyama talked of the “end of history” and “liberal democracy”.

Liberal democracy was the bringing together of two mutually exclusive ideas.

Economic liberalism – that enriches the few and impoverishes the many.

Democracy – that requires the support of the majority.

Trying to bring two mutually exclusive ideas together just doesn’t work.

The ideas of “Economic Liberalism” came from Milton Freidman and the University of Chicago. It was so radical they first tried it in a military dictatorship in Chile, it wouldn’t be compatible with democracy. It took death squads, torture and terror to keep it in place, there was an ethnic cleansing of anyone who still showed signs of any left wing thinking.

It was tried in a few other places in South America using similar techniques. It then did succeed in a democracy but only by tricking the people into thinking they were voting for something else, severe oppression was needed when they found out what they were getting.

It brings extreme inequality and widespread poverty everywhere it’s tested, they decide it’s a system that should be rolled out globally. It’s just what they are looking for.

Good news it works as planned.

2014 – “85 richest people as wealthy as poorest half of the world”

2016 – “Richest 62 people as wealthy as half of world’s population”

2017 - World's eight richest people have same wealth as poorest 50%

The global elite are unsurpassed in looking after their own interests.

What have those populists got to complain about?

Naomi Klein's "Shock Doctrine" covers this ideology in all its nastiness.

 All for ourselves, and nothing for other people seems, in every age of the world, to have been the vile maxim of the masters of mankind.” Adam Smith, The Wealth of Nations


Graph's picture

2014...2016...2017....ZH "enrepeneurs" never had a problem with that.

Mental gymnastics how to call a Davos meetinds, since numerous ZH posts clearly state who is the enemy of humanity ?

Does it sound right to say: LVXXIII International Assembly of Communists / Socialists ? Are they ?

Or, (insert a year) Assembly of "not real" Capitalists ?