As we explained earlier this week, poverty, misery and underdevelopment are not challenges that are impossible to overcome.
We also explained that it has been the unlawful rules imposed by unaccountable supranational organizations the ones responsible for the poverty, misery and underdevelopment we are experiencing today and that the current global governors who have been in power since after WWII are not truly interested in ending poverty, misery and underdevelopment.
A clear sign that the global governors do not intend to end poverty, is that they implement policies that do not activate productivity, job creation and sustainable production. Instead, and despite the fact that practices such as quantitative easing do not work, American and now European leaders, continue to put them into practice as tools of first resort.
The reason is simple. Policies such as quantitative easing assure the wealthiest people the continuous transfer of money to their coffers, while the rest of the population suffers the harshest effects of the ongoing economic crisis.
While the central banks continue to print or electronically produce fake money to bail out their friends in banking and industry, no one who is a member in the middle or lower classes is being positively impacted.
As we have seen in the United States, monies that are illegally appropriated to banks and bankers by way of presidential decree do not result in the activation of the real economy, but in the literal confiscation of that money by large international financial institutions that refuse to lend credit to mid-size and small businesses.
Today, we learn that the head of the International Monetary Fund (IMF), Christine Lagarde, has congratulated the European Central Bank on its decision to initiate the purchase of euro bonds for the next year, although she warned that giving the bankers fifty billion euros a month would not be enough to reactivate the European economy.
Lagarde omitted the fact that QE, is not at all useful in activating any economy, because the money does not get to those who are responsible for creating jobs and increasing production. In fact, the policies being implemented both in the United States and Europe are pretty similar, and their intention are not to reactivate the economy, but to shrink its activity while concentrating the little that is left into fewer hands.
Neither the United States government nor the unelected European authorities have done anything quantifiable to help the economic recovery. They have made sure they impose sanctions on neighboring countries to prevent them from moving forward (Russia) and have pushed other nations into unthinkable wars (Ukraine), which also slows down or stops any kind of recovery.
For a long time now, it has been the policy of the international financial institutions to slow economic growth to a halt in the developed world and to prevent development in the developing world, and they have done so by using the same polices that Christine Lagarde is now calling for as alleged solutions to help the economy recover.
The director of the IMF welcomed the debt purchase program and the way in which the European Central Bank managed the announcement, but noted that it is not enough to revive the European economy, where they “deep structural reforms “ are needed.
“I do not think it’s enough to relaunch the European activity and support the growth,” she said in an interview with French public television France 2.
She added that “it is a very important to supplement the economy with cash, but it is also important to implement deep structural reforms that help improve the structural competitiveness of a number of economies.”
When asked about what type of reform are needed she cited the bill by the French Minister of Economy, Emmanuel Macron, to liberalize various sectors, but also to adopt measures as the ones seen in Spain and “we are starting to see also in Italy “. Simply stated, what Lagarde means with “deep structural reforms” is equivalent to tying economic aid to massive austerity that destroy the basic safety net that supports the majority of people in the European continent.
Both Spain and Greece, which have religiously accepted and adopted EU economic and fiscal policies, are now suffering from the same type of disease: system wide austerity in exchange for the transfer of wealth from their own people to their banking institutions.
The executive director of the IMF considered “formidable” the way in which the ECB has managed the communication on its plan to buy 60 billion per month in public and private debt because “the volume has surprised the market” and because the operation “has been clearly explained.“
Now, she said, the question is whether the banks will have enough confidence to give loans if individuals are to have confidence to spend and if companies are going to have confidence to invest. If we take into account recent history in the United States, banks will not lend their newly acquired taxpayer monies, which is why QE is not a start up policy to bring the economy back to life.
For all this work she argued, “the word capital is the trust and confidence” of all these actors in a fiscal and economic predictable and favorable decisions context.
It is “not enough” to generate the jobs that meet the demand for labor, she said before insisting that “we must restore confidence” and carry out “reforms that are absolutely necessary”.
It is clear that austerity is the only policy that the European authorities are sure they want to impose on all of Europe, except Germany, of course, who are the central managers of the European Union at this time.
Luis Miranda is an award-winning journalist and the founder and editor-in-chief at The Real Agenda News. His career spans over 18 years and almost every form of news media. His articles include subjects such as environmentalism, Agenda 21, climate change, geopolitics, globalisation, health, vaccines, food safety, corporate control of governments, immigration and banking cartels, among others. Luis has worked as a news reporter, on-air personality for Live and Live-to-tape news programs. He has also worked as a script writer, producer and co-producer on broadcast news.