Friday, October 4, 2013

Christine Lagarde: Saving the World

No, really.  Just ask her:

"Putting this all together in a globalized world is a headache," she said about financial regulation. "And yet, it must be done - nothing less than global financial stability depends on it."


She has many ideas – as you would expect from a global savior – about how to go about this, as well as some mild criticisms for actions she views as counter to her work of salvation. 

More debt?

Failure to raise the U.S. debt ceiling could damage not only the United States but the rest of the global economy, International Monetary Fund chief Christine Lagarde said on Thursday.


Too much belt tightening (well, if you consider going from trillion-dollar-plus deficits to something less than trillion dollar deficits “belt tightening”)?

She said growth in the United States has already been hurt by too much fiscal consolidation….


More money printing?

Turning to the rest of the world, Lagarde pointed to signs of progress in the eurozone and Japan, but said transitions to more stable growth may take a while.


A completely irrelevant analogy, typical of airbag commentaries regarding the economy?

She said the eurozone "came up for air" in the spring after six quarters of recession….


Contradictory recommendations designed for future CYA?  Fear deflation like the devil?

Japan also seems to be having success with its massive monetary stimulus to boost the economy out of decades of deflation and lagging growth, boosting GDP by about 1 percent.

"Deflation is coming to an end and a newfound optimism is in the air," she said, adding that Japan must still implement a credible plan to bring down its debt and reform entitlements.

Check and check.

Last, but not least, calls for global government?

Finally, she called on governments to better work together on reforming the financial sector, calling progress too slow, partly due to divergences among different countries.


Thank god (her god, not mine) that Christine is willing to suffer headaches for the benefit of saving the world. 

Too bad the ailment isn’t a bit more debilitating for her and all such self-proclaimed saviors.


  1. Excellent
    J Cuttance

  2. She can say whatever she wants, she had no fear of being charged with fraud or lying. She has immunity under international law. This is what "global government" is about, creating a system where they can do what they want and can only be charged if they wave their immunity

    [quote]Section 8. Immunities and privileges of officers and employees
    All Governors, Executive Directors, Alternates, members of committees, representatives appointed under Article XII, Section 3(j), advisors of any of the foregoing persons, officers, and employees of the Fund:
    (i) shall be immune from legal process with respect to acts performed by them in their official capacity except when the Fund waives this immunity;
    (ii) not being local nationals, shall be granted the same immunities from immigration restrictions, alien registration requirements, and national service obligations and the same facilities as regards exchange restrictions as are accorded by members to the representatives, officials, and employees of comparable rank of other members; and
    (iii) shall be granted the same treatment in respect of traveling facilities as is accorded by members to representatives, officials, and employees of comparable rank of other members.[/quote]

    And she is in favor of taxes because she is immune from most taxes

    [quote]Section 9. Immunities from taxation
    (a) The Fund, its assets, property, income, and its operations and transactions authorized by this Agreement shall be immune from all taxation and from all customs duties. The Fund shall also be immune from liability for the collection or payment of any tax or duty.
    (b) No tax shall be levied on or in respect of salaries and emoluments paid by the Fund to Executive Directors, Alternates, officers, or employees of the Fund who are not local citizens, local subjects, or other local nationals.
    (c) No taxation of any kind shall be levied on any obligation or security issued by the Fund, including any dividend or interest thereon, by whomsoever held:
    (i) which discriminates against such obligation or security solely because of its origin; or
    (ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the Fund.[/quote]

    1. DJF, I haven't seen you around here for a while. Your comments are always enlightening; thank you for this.