Christine Lagarde: the world is turning multipolar
The ECB President warned that the tectonic plates of geopolitics are shifting
Christine Lagarde today warned that the world “may be becoming more multipolar”. The ECB President claimed during a speech to the Council of Foreign Relations in New York that “the tectonic plates of geopolitics are shifting faster”.
“We are witnessing a fragmentation of the global economy into competing blocs, with each bloc trying to pull as much of the rest of the world closer to its respective strategic interests and shared values,” Lagarde said. “And this fragmentation may well coalesce around two blocs led respectively by the two largest economies in the world.”
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Citing several causes for these changes — the pandemic, the Ukraine war, the “weaponisation” of energy, inflation and the China-US rivalry — Lagarde argued that there would be “more multipolarity” as geopolitical tensions mount. As one of two twin challenges, this new “global map” would have “first-order implications” for central banks, Lagarde continued.
Due to new trade patterns and the increasing use of “alternatives to major traditional currencies for international trade”, China has become a challenger to US dominance. The former IMF chief noted that Beijing has already increased over 130-fold its bilateral trade in goods with developing economies, making the country the world’s top exporter in the process. “All this could create an opportunity for certain countries seeking to reduce their dependency on Western payment systems and currency frameworks,” she added.
Lagarde stressed that these changes did not amount to an “imminent loss of dominance for the US dollar or the euro”, but they do “suggest that international currency status should no longer be taken for granted”.
Despite the ECB President’s gloomy prognostication, Lagarde added that multipolarity could present Europe with a silver lining. Arguing that it “raises the stakes for internal policy cohesion,” Lagarde claimed that “the multiplier effect of common action” in areas such as industrial policy, defence and investing in green and digital technologies would be “much higher” for member states. She also added that “long-delayed projects” such as capital market integration could be pursued.
Lagarde’s comments follow on from similar remarks made by former Treasury Secretary Larry Summers this weekend, who told Bloomberg that the US was “getting lonely” on the world stage. “There’s a growing acceptance of fragmentation, and — maybe even more troubling — I think there’s a growing sense that ours may not be the best fragment to be associated with,” he said. A day later, current Treasury Secretary Yellen warned that “there is a risk when we use financial sanctions that are linked to the role of the dollar that over time it could undermine the hegemony of the dollar.”
Striking an ominous tone, Lagarde concluded that the EU had to prepare for “the new reality”. “If I may paraphrase Ernest Hemingway,” she said. “fragmentation can happen in two ways: gradually, and then suddenly.”
Is Lagarde meant to be explaining something the rest of didn’t already know for some time now?
The author writes:
Striking an ominous tone, Lagarde concluded that the EU had to prepare for “the new reality”.
Congratulations, but about five years or more too late. Just the type of leadership the EU needs to continue to lose whatever influence it thought it might have.
They’ve known it for sometime but now have no choice but to openly admit it, lest they’re accused of being behind the curve.
And in other news, the sky remains blue, politicians still lie, and the domestication of the dog continues unabated.
and a new age is dawning but 9nly if you’re awake to see it.. most, like this sleep Joe (Jolly) will continue to slumber.
Looks like she is practising speeches for when she is sacked from the ECB and moves seamlessly over to the IMF.
It’s got a bit more depth.. maybe not much but enough to take notice of? with people like this there’s a lot to learn in what the do and don’t say..
Surely they wouldn’t have her back already!
Shouldn’t Lagarde be sewing mailbags ?
She appears to have one around her neck…
Yes, you beat me to it. In a nice stripy two piece…..
She’s an awful woman and epitomises everything that is wrong with Western ‘leadership’.
WEF the great reset! Nothing is by coincidence. The rulers of the world are simply enacting their plans.
Yes, but do not think it is quick nor easy, simple nor obvious.. it grinds like the wheel of God, ever so slow but ever so sure.. take note; it is your future.. you are part of it, indeed you bring it about by all the little moves you make (and don’t)….
Christine Lagarde today warned that the world “may be becoming more multipolar”
May be or is? Cos this old news. They don’t seem to be keeping up very well.
there is a risk when we use financial sanctions that are linked to the role of the dollar that over time it could undermine the hegemony of the dollar.”
Mrs Debtfire on top of the game again. Basic economics yellen. People that understand these things have been saying that for quite some time too.
Do you think they just don’t tell us until its impossible for us not to notice these things are happening and they think we are stupid or are they really that stupid that they have only just realised this?
“We are witnessing a fragmentation of the global economy into competing blocs, with each bloc trying to pull as much of the rest of the world closer to its respective strategic interests and shared values,”
I find it interesting that she lumps together two concepts as if they were interchangeable ..they’re not! In fact they’re almost opposites: “strategic interests” is a greedy, selfish, unipolar concept whereas “shared values” is a generous, unselfish concept of working together for the common good… ie cooperation vs dominance, and mutuality vs one-sided greed like the US.. the former, the opposite, being closer to the Russia / China concept.. but of course we’re told we must love US hegemony and we must hate all things Russian and Chinese! ..enough already.. we’re sick of your lies; we’re sick of your broken promises; we’re sick of your greed; we’re sick of you evil and your death, your ruin and your hate. Die ASAP please..
Then why didn’t Yellen do anything to stop the Biden admin from stealing from Russia? The consequences seemed rather obvious at the time even to me.
Christine Lagarde is way too earnest. And she is merely promoting her own globalist fantasies.
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