Courtesy of Mish.
In a speech at the National Press Club in Washington, IMF managing director Christine Lagarde stated “If inflation is the genie, then deflation is the ogre that must be fought decisively.”
With that sentence Lagarde did something most central banks won’t: discuss Lord Voldemort, the deflation ogre, by name.
Please consider Christine Lagarde warns of growing threat of deflation.
“With inflation running below many central banks’ targets, we see rising risks of deflation, which could prove disastrous for the recovery,” said Ms Lagarde, in a speech at the National Press Club in Washington. “If inflation is the genie, then deflation is the ogre that must be fought decisively.”
With central bankers afraid even to mention the word “deflation”, Ms Lagarde’s remarks make her the first high-profile policy maker to give warning that extremely low inflation in rich countries could result in the kind of falling prices that have dogged Japan’s economy for two decades.
Ms Lagarde’s comments were echoed by Charles Evans, president of the Chicago Fed. “The recent news on inflation has not been good,” he said in a speech on Wednesday. “Inflation is too low and is running well below the FOMC’s 2 per cent target.”
Time to Unbottle the Inflation Genie
Clearly Lagarde wants to unbottle the inflation genie. How do I know the inflation genie is in a bottle? Well the ECB told us so in December of 2005.
Here is proof the monster was captured:
The above images is from a self-serving ECB video that attempts to brainwash school kids and teachers about ECB definition of “price stability“.
The wizards’ main worry now is “You-Know-Who” and “He-Who-Must-Not-Be-Named“.
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