Comments on: Global action for a global recovery Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 By: falga Sat, 01 Oct 2011 16:07:16 +0000 so Ms Lagarde, what is next? collectivism? We need practical solutions to practical problems. Governments are excessively indebted while consumers are equally indebted. The instincts of all governments is to tax the consumers and reduce expenditures while the consumers instincts at such stage is to similarly save and cut expenditures. Both solutions for deeper trouble unless we find a way to increase debt like Lord Keynes suggested. It is time to be bold, let me suggest some bold ideas for the IMF:

1/ OECD should adopt a flat tax rate for all its citizens of 20% max – no deductions!
2/ Bring the rate of divident tax in line with such a flat tax rate
3/ Same for corporate tax rate across all OECD countries – no more than the individual tax rate
4/ All companies/corporations should be given a tax holiday for the next 5 years but renewable every year if they can show that they are hiring people at a rate of 20% y-o-y
5/Reduce social payments from employee and employer side to no more than 5% each side – or 10% total
6/OECD countries governments should invest massively into fiber optic and bandwidth development – this is the super highway of the future! This will increase communications and trade while at the same time enable many businesses and individuals to reduce CO2 emissions…

It is time for new and bold ideas as the current situation is truly unsustainable!

By: Bukhari Sat, 01 Oct 2011 12:50:22 +0000 It is a well-meaning and purposeful series of suggestions and I, for one, am glad that a figurehead has provided a view. As an opinion, there are facets of the market system which are ‘wrong’. However we cannot simply pull them out or, Reform the various jurisdictions in their entirety; for example, curtailing excessive liquidity in one area but not another. Even if Capital Controls were to be implemented, this would serve to drive a wedge between the haves- and have-nots- and when prices are already skewed – this may impede deep capital formation. To make a start on goal-seeking, perhaps ‘common groups’ based on preferred sets of fundamental concerns could be formed. And while some form of Isolationism may have to exist at the beginning, these barriers could be dismantled according to any varying degree of success.
In short, while the four elements are universally applicable, any implementation first requires political will to fund a solution, so group nations who share the same concerns, insulate them from external thorns and then work on fixing their internals.

By: gotham1883 Thu, 29 Sep 2011 02:50:50 +0000 The only way to stop global tyranny is for all countries to default on those loans, destroy the IMF and World Bank.

By: xcanada2 Wed, 28 Sep 2011 02:47:35 +0000 The world has fundamentally changed since the early 1990s, due to the explosion of communications, particularly the Internet. This enabled the off-shoring of manufacturing and services from the West to the less wealthy, but huge, labor pools in India, China, and elsewhere. The demise of the Soviet Union also was a major factor, opening up the whole world to new business.

Business went on a feeding frenzy throughout the world, transferring jobs to the lesser developed countries, paying pennies on their Western dollar for the labor, selling the resulting goods in the West for 50 cents on the dollar, and pocketing the difference. The wealthy business/financial class grew quickly. And they grew stronger, buying off governments so that business regulation was greatly reduced. Also, through the media, the business class could pretty well control the general thinking of populaces.

By about 2000, the West was exhausting their discretionary wealth, and greater amounts of new disposable income were needed so that the people could continue to buy all the new production from China and India, even though Western wages were stagnant. The dot-com bubble had reached a peak and burst. How to continue the business fest?

In 2001, Bin Laden provided the answer. Go to war, and do it on credit so there is no pain, no economic feedback to the populace. Drop the interest rates to near zero, so that a housing bubble develops. Everybody go out and shop, while the US attacks Afghanistan and Iraq. The US even has its eye on Iran. Maybe the West could take over the Middle East, and solve the Israeli problem at the same time.

In Europe, they also promoted a housing and construction bubble, through loans for anybody, and any country, to keep the financial momentum.

But, of course, the debt buildup process is unsustainable. The world has been left in huge debt to the financial class. Business/finance can’t get anything more out of the system, and the system is grinding down to a much lower level.

The financial class led the world into this mess, based on unmitigated capitalistic greed. These were not necessarily very intelligent men, certainly not people of high ideals for the world, certainly not inclined towards world leadership. Their focus is simply on making money. We, the world, are now seeing the result of such a short-sighted point of view as is represented by the capitalist ethic. The people who have been leading the world, garnering the money, taking over peoples opinions and their governments, cannot lead us out of our present world dilemmas. And, it is unlikely they will let any other way of thinking easily take over.

The irony is that actually, the world presently is suffering from an over-abundance of production capability. Plus, there are huge needs for developing a sustainable means of life on our planet. The present rampant use of the worlds resources,—oil particularly, but also the rest of the mineral deposits—, cannot go on for more than a few centuries. Peak pumped oil is probably upon us. If we could organize globally, we could actually produce our way out of our present problems, and address urgent world problems such as sustainability and global warming. For our children ….

We need to control business and finance. This can only be done with world regulations. Else, business and finance just moves their money around avoiding taxes and playing one nation’s work-force off against the other. World regulation means loss of sovereignty for world nations, similar to what Europe is presently facing. It is not an easy sale, and world business, at the height perhaps of its strength, is certainly against it.
I don’t see how we are going to get the world leadership we need. It might get easier as the world situation becomes more dire. Maybe the Internet, the basis for the changes of the last few decades, will also enable a solution. It is technically possible to have world-wide votes (but who would vote?), or world-wide actions to control business (it already slightly happens). We have been thrown together by the Internet, and it has been used to great advantage by business. Will a truly counter-prevailing world-wide people’s organization arise, enabled by the Internet? We need something.

I imagine something like the above opinion is what Christine Lagarde is talking about.

By: rota Wed, 28 Sep 2011 01:11:43 +0000 Only the delusional think liberals run the world. Superwealthy investors, corrupt government officials and executives dominate corporations, financial institutions and the bulk of government policies related to the movement of capital around the globe (and into the pockets of a lucky few). They wage the real class warfare. To believe otherwise is either ignorant or delusional behavior. Either one nets the same result: people tragicomically supporting the very people that are skewering them a bit more every day (unless he/she is in that lucky class).

Lagarde’s commentary is woefully lacking in specifics as others pointed out. Tthe “crisis” she mentions is not yet at a level severe enough to where the people pitifully blaming generic “liberals” for all of societies ills finally realize that all the things they “want” to believe have blinded them to the realities.

Very sadly, there will have to be much more suffering before sufficient numbers of the liberal bashing fools finally remove the emotional barriers of hate and animosity that hold them back from genuinely being able to reason these things through.

Heaven help us all, because historically these mass delusions cause a lot of wars and terrible suffering. And the propaganda machines around the world have definitely conned a large number of people and there seems to be no end of it soon. Unfortunately, the collateral damage to people who are not in the angry mob is a very real outcome.

By: Bledis15880 Tue, 27 Sep 2011 13:35:39 +0000 Ms. Lagarde is all sweet words and no action. I consider it a waste of time listening to someone who’s main goal is to find consensus and agreement. That what she said at the IMF meeting last week: I am happy that we all agree there is a crisis. She is not good at making decisions that make some members unhappy.
Lagarde is the typical EU European bureaucrats the same as US Democratic party representatives, all talk and no action. Liberals who plan to have the working people pay for the lazy and (Germans + Nordic Countries pay for Greeks), in US Obama did this hard working people pay for those who are completely healthy and live on welfare.

And these lazy liberals want to have fun and smoke pot, go to Greek buzuki etc. These idiot weak-liberal politicians need to stick in their brain that to get rid of debts you need to sacrifice some years work or some years of a country need to be sacrificed. This stands for governments and households together.
If you lived beyond your means for some years and you piled up too much debt, guess what, work double to pay it, work 2 jobs and loose some years of your life in hard work, like they have lost who build that wealth in Germany, US, China or elsewhere and don’t go out partying in night clubs and on (Greek buzuki) and pay your taxes Greek taxpayers.

We people have a big problem in this world. Liberals are running our worlds. Majority of populations like to vote for liberals, they like weak people as leaders. That’s why Merkel fired Alex Weber, because he was a tough man, she like weak men around her, so she can do what she wants. EURO and Europe will not fail if Greece defaults. That’s why Dominique Strauss Khan was scammed, so a weak person could replace him, someone who is useless who can be controlled, who doesn’t have an independent analytical mind.

The strangest thing to me is how this stock market is rallying with these empty words. Probably the Hedge funds need some short-term profit which is the only logical explanations because everything else goes against this rally.

By: AIM_1980 Tue, 27 Sep 2011 11:09:35 +0000 My dilemma: I earn £40k p.a. and need to save 2-3 times that amount to put down a reasonable deposit on a 2-bed flat out in London’s commuter belt (zone 4). As long as I’m saving for my deposit, which will take many years, I’m not spending in the “real” economy.

By: Lambick Tue, 27 Sep 2011 10:36:29 +0000 With all due respect, Ms. Lagarde seems to be using nice and supporting words, but it sounds a bit like the good advice everyone was giving to Japan 20 years ago. “Do something, and do it right , whatever…”

Shut up and deleverage.

By: rennes Tue, 27 Sep 2011 06:43:15 +0000 I am from the Netherlands, I believe that the economy is being abused by certain elites to put pressure on governments. There is enough money, there’s plenty of everything, why should people starve in some countries while here million dollar boats that sail decadent feasts are held. It has a strangle hold of the elites, frees us from them, God

By: stanrich Tue, 27 Sep 2011 03:46:17 +0000 We are in a period of world wide de-leveraging that will continue despite action or inaction by the world’s financial elites.

The best that we can hope for is a meaningful approach that will ease the pain somewhat. Since we have seen absolutely zero in that regard from the world’s leaders, I am not holding my breath.

So, we will see continued job losses and economic stagnation among the developed nations, a sovereign debt default from an EU member nation, and worst of all, absolutely nobody stepping forward and pointing the way out of this mess.

Have a nice day.