Christine Lagarde, Managing Director of the IMF, speaks ... As I have maintained, Financial Reset is a done deal, merely some mop-up operations, mostly technocratic in nature, but necessary to bring in full implementation. The strategic moves are now towards the much larger objective, of which Financial reset is but a part. This Strategic Objective is Global Governance --- and here we have none other than Christine Lagarde providing confirmation. Of course, Lagarde gives Global Governance a new fancy-dancy Applied Perception management term; this is now to be called The New Multilateralism --- geez, that term is so tempting, I can almost taste the sugar coating. The Big Question: Is anyone listening? This could just be the trigger for the long-predicted convulsions of the 2020s on. ******************************** EXCERPTS As 2015 begins, policymakers around the world are faced with three fundamental choices: * to strive for economic growth or accept stagnation; * to work to improve stability or risk succumbing to fragility; * and to cooperate or go it alone. The stakes could not be higher; 2015 promises to be a make-or-break year for the global community. To break free from stagnation, we need renewed policy momentum. If the measures agreed by the leaders assembled at the G-20 in November are implemented, they will lift world GDP by more than 2% by 2018 – the equivalent of adding $2 trillion in global income. Besides structural reforms, building new momentum will require pulling all possible levers that can support global demand. Accommodative monetary policy will remain essential for as long as growth remains anemic – though we must pay careful attention to potential spillovers. As we ponder the second choice, between stability and fragility, we must consider how we can make our increasingly interconnected world a safer place. National economies are so interconnected that shifts in market sentiment tend to cascade globally. It is therefore critical that we complete the agenda on financial-sector reform. We also need better rules for nonbanks, stricter monitoring of shadow banks, and improved safeguards and more transparency in the derivatives markets. Progress on closing data gaps in the financial sector is urgently needed as well, so that regulators can properly assess risks to financial stability. Most important, the culture of the financial sector needs to change. Restoring trust should therefore start with an all-out effort to promote and enforce ethical behavior throughout the industry. The third choice, whether to cooperate or go it alone, is the most critical. No economy is an island; indeed, the global economy is more integrated than ever before. Sovereign states are no longer the only actors on the scene. A global network of new stakeholders has emerged, including NGOs and citizen activists – often empowered by social media. This new reality demands a new response. This can be done by building on effective institutions of cooperation that already exist. The new networks of influence should be embraced and given space in the twenty-first century architecture of global governance. This is what I have called the “new multilateralism.” I believe it is the only way to address the challenges that the global community faces. project-syndicate.org/commentary/multilateralism-and-the-global-economy-by-christine-lagarde-2015-01#2mh1adtH4wxFrOeE.99 ********************************
Posted on: Tue, 20 Jan 2015 01:21:10 +0000
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