When Christine Lagarde was named Director of the IMF (2011) reports, particularly in Europe, expressed concerns over her “more liberal tendencies”. However, she’s proven to be firmly aligned with advancing the IMF’s command which centers on strong Central Bank Control.
As if, and to be expected, cut from the same cloth one should not expect that Janet Yellen’s mantra will differ, in any significant way, than any Fed Chair before her. Maintaining a callous grip on Central Bank Authority will always be centered on insulating the financial markets of member banks and little else.
At a time of soaring unemployment, plummeting labor participation rates, hollowed-out household wealth and growth in the plus-60 age component of the labor pool one would think that Smart Money would easily spot massive potential in reinvesting in American economic infrastructure (and Congress would join the drive). When you’re the lead member in global banking mythology, domestic policy takes a back row seat in the staged production of global monetary policy.
This Globalized Monetary System, as permitted, thrives on bleeding and it cares not whose veins it drains. If you want a change in direction then Congress is going to have to take back control of economic and monetary policy otherwise the downwardly-mobile labor force will increasingly petrify.
Curtis C. Greco, Founder
