Lagarde's denial of inflation and its consequences.
Is Christine Lagarde playing down the current situation, is she serious or what is really behind her behavior? At the very least, the capitulation she wrested from Jerome Powell when she managed to get her way in November 2021 and have the word "transitory" temporarily deleted has massively shaken confidence in the European Central Bank in parts of the EU, which the president publicly admitted a few days ago, according to Bloomberg.
EXCERPT: The war will have "consequences" for growth as inflation picks up and confidence is damaged, Lagarde said Monday at a conference in Paris. The difficulty for central banks is to maintain price stability without affecting activity, she said.
As we can see, she can now no longer conceal or downplay the increasing inflation. In the meantime, the inflation rate is increasing from month to month, and it is already publicly admitted that it will continue to do so for the next while. As far as "stagflation" is concerned, she doesn't want to know anything about it and also thinks that it definitely won't come to that, while the reality of the citizens' lives speaks a different language and already lets them suspect what they still have to expect in future.
Asked about the risk of stagflation, Ms. Lagarde said, according to Bloomberg:
EXCERPT: "Even in the gloomiest scenario with second-round effects, with a gas and gasoline boycott and an intensification of the war that goes on for a long time - even in those scenarios - we have 2.3% growth. We don't see any elements of stagflation now."🤥
What could be read in the article is nothing more than an officially embellished economic growth of 2.3% , although in the past a much higher value was targeted and expected! So even in a "worst case scenario" it will not come to a stagflation, says the ECB chief, while those who believe this statement despite current events and noticeable effects in Europe still have a rude awakening ahead.
What I wonder is, why does this term and scenario even exist and why has all this already happened in the past, when even in the worst case scenario it will not happen? Stagflation is definitely a gloomy scenario, a mixture of economic stagnation and an increased inflation rate. Is there a real danger of this? In my opinion, the answer is a clear YES, definitely!
When asked if they might want to do something about rising inflation and concerns about stagflation, the answer was as follows, according to Bloomberg:
EXCERPT: She reiterated that Europe and the U.S. are not in the same phase of the economic cycle and the eurozone is also more exposed to the war right on its border. "We are in different universes, in different phases of the cycle, with different starting points. We in the eurozone have negative interest rates, while the U.S. has never gone below zero."
We have the ECB to thank for this, even if it may be easier for those responsible to blame this situation on "different parallel worlds".🙄
The bottom line is, according to these statements, we Europeans supposedly have nothing to fear. The U.S. central bank FED (Federal Reserve Bank) had increased the key interest rate by 0.25 percentage points and plans this year still further increases. Many have still thought because the war, perhaps Lagarde & Co now take further momentum in the direction of money multiplication orgies at the expense of the EU and the fight against this, but NO, instead, the ECB remains here quite calm and inactive, because there is apparently nothing to criticize here and we (Europeans & Americans) are officially just in "different universes".
After all, we are talking about the head of the ECB here, and if people in Europe, which is completely under the thumb of the U.S., are rumored to be in a different universe, then I don't know how this situation can be presented and justified to the citizens of Europe in a morally credible way without causing offense. I mean, when the U.S. says "Jump!", Europe asks "How high?".
The much more important question you should ask yourself is, who do I want to trust? A Mrs. Christine Lagarde, who was the managing director of the International Monetary Fund from 2011 to 2019 and the IMF, which (officially) of course is "only" concerned about the well-being of all member countries and of course has no dirt on itself? 💩 And if you should trust such institutions including their members, do some research yourself and ask yourself the question: Does the behavior of these people at all justify the trust that some citizens place in them, or shouldn't it rather show us that it is fundamentally wrong to trust a system that courts such people, while at the same time it seems to punish the truthfulness of honest people as well?
Just ask yourself the question: Is the economy recovering at the moment? If we talk about a stagflation and the economy stagnates, whereby the economic growth is considerably weakened, then of course the question for the future is: Will the economy recover from this? IF that "would" be the case, then of course this would solve the problem!
Personally, I heard just a few days ago Shanghai is again planning a new lockdown and mass testing because of the danger of this (so-called) "pandemic" spreading again. Or one of those bad news for many an exporting nation, namely that the massive container ship "Ever Forward" has been stuck for two weeks in the Chesapeake Bay, the third largest estuary in the world, with twelve thousand containers, a ship which is even bigger than the "Ever Given" stuck in the Suez Canal. Another news item a few days ago was that Turkish authorities have suspended shipping along the Bosphorus because a mine-like object has been sighted.
Another problem are all these sanctions and forced terminations of business relations or the shortage of raw materials, which naturally arises as a result. So I think, if you take all these facts into your consideration, you will see in which direction we Europeans are going right now, in which economic direction we are being whipped by self-appointed guardians of morality, who with their sanctions are doing far more harm to their own peoples than to those they want to hit and who definitely have alternatives for their economic partners in Western countries (keyword: China, Middle East etc.).
Maybe you also think: "Hey, what is he talking about, I trust the ECB, because it has always steered me in the right direction, while central banks, politicians, crises etc. do not really exist! And even if, then they have according to trustworthy state media already everything under control and there are at most times tiny low points, before they lead us out of there with momentum again, why there has never been an impoverishment of the people, etc."🐑📺🤓
Decide for yourself who you trust, go along the way or be skeptical and look for alternatives as far as places, supplies and especially financial investments are concerned, so that you are ready when the system collapses thanks to the Western leaders, who will depose themselves when the time comes and are guaranteed not to save the ordinary citizen from the situation they have created.
Whatever you do, don't believe anyone lightly and, above all, check the information of those who seem to set the course on the world stage and who, according to their words, always meant well with you and your kind, while their deeds in the last decades have always spoken a completely different language.