Before taking up her new duties, the President of the European Central Bank, Christine Lagarde, recently made controversial remarks. The former managing director of the IMF implored: "Is not it true that we have finally taken the measures that are required to act in favor of employment and growth rather only for the protection of savers? " About former President Mario Draghi and the ECB's negative interest rate policy, she then hinted that people should be grateful for employment policies, whether savings are protected or not.
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Easy to say, Lagarde
Some commentators were surprised by the bold remarks reported Wednesday, with a Twitter user note: "Translation: You should be happy to be slaves." Another feeling incarnated Lagarde's words: "The old mantra that tax slaves think they would be unemployed without government protection, propaganda does not work when Bitcoin lights you up."
In her speech, the new head of the ECB criticized the German and Dutch governments for not investing their budget surpluses in causes she deems worthy, such as infrastructure, education and innovation, in order to allow a better rebalancing ". the bigwig of financial policy blatantly noted direct:
We should be happier to have a job than to protect our economies … I think it is in this spirit that monetary policy was decided by my predecessors and that they made a choice rather beneficial.
Who is we? – Poverty in the EU
When Lagarde says "we", we are inclined to wonder who she is talking about exactly. According to statistics, 16.9% of residents of the European Union are at risk of poverty even after social protection and social transfer factors are taken into account from 2017. Many Europeans currently have a "job". But the interesting statistics are often supported by extremely lax measures. of what constitutes the said use. Irregular and unreliable tasks, such as working an hour a week again, officially make Draghi and Lagarde's rhetoric seem healthy. According to the study "Measuring employment and unemployment" conducted in August 2018 by Andrea Brandolini and Eliana Viviano, researchers at the Bank of Italy:
The employment rate corresponds to the proportion of the working-age population in paid employment: it is a measure of the workforce that does not take into account the way in which the duration of the work and the duration of the contracts differ according to the persons employed.
Even though Lagarde releases huge sums of millions of dollars, she sips champagne in branded clothes and "electric scarves," but the common populace is living off a paycheck regulated by the ECB's policy. must remain grateful that their savings are consumed alive, at least work, perhaps. Those who oppose the new defender of negative rates at the ECB are not necessarily opposed to fashion and good life, nor to the hypocrisy and arrogance necessary to express such absurdity in a society. position like Lagarde's.
Savings are key to healthy economies
As the US economist Murray Rothbard once wrote: "Savings and investment are indissolubly linked. It is impossible to encourage one and discourage the other. Without the ability to save, there is no capacity to invest. No chance to build for a future, or create a space by leveraging finance for a personal time of innovation, exploration and rest.
Lagarde's statement that surplus countries should invest, while calling on individuals to shut up to preserve their value, betrays an important and revealing underlying worldview: money and savings are for we, the work is for you.
It is ironic that the socialist lawyer of France takes such a position. Returning to Bitcoin, the statements also betray something else. The very reason why most governments oppose decentralized and unauthorized finance and crypto-currencies may be that Bitcoin can save and spend freely, regardless of what's happening. a disconnected third party might think of what to do with your money.
What do you think about Lagarde? Let us know in the comments section below.
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