Lagarde was a Minister in the French UMP party. A coincidence that she is in
favor of maintaining financial UMP - in other words funny money. Tapering or whatever euphemism one uses for reducing the amount of money
printing is going to be painful as markets are forced to realize the price of
debt. Exit strategies are mathematically impossible as we all know the Central
Banks could only withdraw a fraction of the funny money they created.The UK needs a new bonanza on the scale of North Sea oil to allow any unwinding of QE. Without it there would be a severe depression.
Our fiat currencies have been hijacked by a financial community that operates in a parallel world to the real economy. There is no way out of this mess unless the masses are driven into poverty and unrest or the global financial system collapses.
Laggard and Blancmange should both be long gone, having perhaps irreparably
damaged a global institution called the IMF by trying to turn it into a French
version of a € lifeboat
"The day will come when this period of exceptionally loose monetary policy...
must end," she said in a speech to a global gathering of central bankers hosted
by the US Federal Reserve in Jackson Hole, Wyoming, on Friday.
"We need to plan for that day, especially since we do not know exactly when
it comes," said Ms Lagarde, the managing director of the International Monetary
Fund.
"Just as with entry, exit will take us into uncharted territory."
Speaking as the Fed's plans for slowing its $85bn-a-month bond-buying program
have shaken emerging economy markets, Ms Lagarde said such "unconventional
monetary policy" (UMP) approaches remained important.
"Let me say it up front: I do not suggest a rush to exit. UMP is still needed
in all places it is being used, albeit longer for some than for others."
She said specifically that both Europe and Japan still have much to gain from
such programmes, which mostly aim to enhance growth by pressing interest rates
lower.
But she said the IMF and policy makers should be thinking about the
ramifications of reeling in easy-money programmes.
"That includes the implications for global economic and financial stability:
the whole system, not just one part of it."
1 comment:
Well this is not news to anyone who has paid more than passing attention to the events of the past few years. Which of course is about 2% of the UK population. The remaining 98% yawn and head straight for the sports section.
Unless the British share is funded by compulsory door-to-door collection from the British public, the reaction here will be a shrug and a "nothing to do with me guv".
A cursory glance at any of the polls taken to determine what matters to the British public shows that the issue of "Europe" is way down on the list.
The plain fact is the British public do not care about this stuff. Whether of course they should is a different matter.
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