Christine Lagarde: “2013 Will Be Make or Break” Christine Lagarde, managing director of the International Monetary Fund, cautioned at the World Economic Forum in Davosthat Europe must continue to guard against a relapse in 2013. Speaking at an event honoring women leaders hosted by Credit Suisse in partnership with Newsweek and The Daily Beast, Lagarde was joined by Egyptian human rights activist Dalia Ziada, who discussed the challenges women face in the Middle East. “2013 will be a make or break year,” Lagarde said. “2012 was tough. A lot happened in Europe, a lot happened in the U.S. and there is clearly a lot happening in Asia.” – The Financialist
Dominant Social Theme: If we don’t make it in 2013, the world as we know it will disappear.
Free-Market Analysis: While this speech was made a while ago at Davos, we think it is worth noting as Ms. Christine Lagarde is enunciating a significant dominant social theme – that the West is surely destined to perish if savvy officials don’t make the proper decisions.
The West is in terrible trouble anyway, economically, most from the decisions of this self-appointed elite that has used central banking as a weapon of creative destruction. Having obtained the awesome power of money printing, elites printed too much of it, probably on purpose, and thus crashed economies first in the US and then in Europe.
Now, Ms. Lagarde indicates (and surely she will repeat this meme) that the same mechanism and leadership that brought us to our current situation are to be entrusted with critical decisions in 2013. Here’s more from the article:
Policymakers have to stay focused on the medium-term plan to reduce debt. The same goes for Japan,” Lagarde said. In Europe, although 2012 saw many policy actions such as the institution of the European Stability Mechanism, more work remains. “We need to make sure we guard against relapse – which will happen if we don’t keep at it. More importantly, it’s not time to relax.” “
Ingredients for a Stable Economy Trust and con?dence are crucial to avoiding a relapse and seeing the course for global economic stability, Lagarde explained. “Trust is a crucial factor for the economy. It has been eroded, and in order to rebuild it you need to face reality constantly. You need to tell people the truth – that’s what they want.”
If Ms. Lagarde wanted to tell the truth, she would explain to people how the fiat-moneybusiness cycle works. Monopoly central banks overprint money and cause first a boom and then a bust. By increasing or decreasing money printing, a handful of people can shake the economic world…