Christine Lagarde made some controversial comments before starting her new role as the new President of the European Central Bank. Lagarde who held before the position of IMF managing director said:
“Would we not be in a situation today with much higher unemployment and a far lower growth rate, and isn’t it true that ultimately we have done the right thing to act in favor of jobs and of growth rather than the protection of savers?”.
These comments came in regard to the negative interest rates policy implemented by the former ECB president Mari Draghi.
Of course, this is not something new about Lagarde. She also said time ago:
“Everybody would like a little bit more inflation”
Central bankers are not even pretending anymore that are saying it clearly, that you should be happy to be slaves.
When she says “we” one tends to thing who is she speaking about. If wee lookt at the statistics (16.9 % of the EU population) living at risk of poverty. Maybe some EU countries are fully employed but the amazing stats about the falling unemployment rate which is 7% contradicts the 16.9 % that are living at risk of poverty.
The problem is that employment and unemployment rate is not just a number that you can rely on because there are unreliable jobs like a one hour a week job for example that makes Lagarde’s argument appears sound. According to a research of the bank of Italy about the measurement of employment and unemployment rate says:
“The employment rate is the proportion of the working-age population with a paid job: it is a headcount measure that disregards how working time and contract duration differ across the employed.”
While bankers create money from thin air and live their multimillion lives, the plebs that live paycheck to paycheck and have their savings cannibalized from the ECB monetary policies have to be thankful to the bankers that at least they have their job.
Also in the U.S., we have Fed Q.E., negative rates everywhere and the unemployment rate falling. All this points to a bull run in the precious metal markets as analysts say.
Every day, millions in Venezuela, Hong Kong, Lebanon, Syria, Catalonia, Russia, Egypt, Chile, Iraq, Argentina, Ecuador are protesting against their governments. The root of the problem is not simply the corrupt governments, but the monetary system and it is just a matter of when (not if) this will happen in the western countries.
People need a more democratic monetary system where no government or central bank can decide the value of your savings. This is why governments fear decentralized permissionless systems like bitcoin because removes the power from their hands.
What are your thoughts about Lagarde’s comments? Feel free to post your opinion in the comments below.