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‘Inflation came from nowhere’ – Lagarde

Samizdat | October 31, 2022

The European Central Bank (ECB) has doubled its key interest rate to the highest level in more than a decade in an attempt to combat soaring inflation, ECB President Christine Lagarde has explained.

In October, the inflation rate in the Eurozone reached 10.7%, according to official preliminary data, released on Monday.

In an interview with Irish state broadcaster RTE on Friday, Lagarde said: “We do it because we are fighting inflation” that had “pretty much come about from nowhere.” She pointed to a speedier-than-expected economic rebound from the pandemic as a cause alongside “the energy crisis caused by Mr. Putin who has decided in an unjustifiable way to invade another country.”

The ECB chief added: “That’s what he [Putin] is trying to do, cause chaos and destroy as much of Europe as he can. This energy crisis is causing massive inflation which we have to defeat.”

She went on to say that “Anybody who is behaving in that way has to be driven by evil forces,” and that the “sick” Russian president is a “terrifying person.”

Discussing her previous meetings with the Russian leader, Lagarde described him as an “unbelievably super-briefed person” with “flashing, freezing eyes.”

After expressing her view, Lagarde however stressed that she’s “just a central banker,” and “shouldn’t be saying all these things.”

On Thursday, the ECB announced another interest rate hike, taking Eurozone rates to the highest level since 2009. According to Lagarde, they are aimed at bringing inflation back to “reasonable levels so the cost of living isn’t as high as it is for people.” In October, inflation across the euro area hit 10.7%, according to preliminary data from Eurostat.

The EU has blamed Russia for the spiraling energy crisis across the continent. However, many economists point to the bloc’s fiscal policy responses as a major reason behind the crisis. Moscow has also criticized the “illogical and often absurd” moves by Western nations, saying that the sanctions imposed by the US, EU, and other countries on Russia have backfired and resulted in a sweeping energy crisis as well as record inflation across the West.

October 31, 2022 - Posted by | Economics, Russophobia |

4 Comments »

  1. The flippin bankers are delusional. Look no further than the idiot biden as the cause for the energy crisis. These morons act like they understand and sympathize while they steal your property and send you to the soup kitchen.

    Like

    Comment by raggs12 | October 31, 2022 | Reply

  2. Just as the evolutionists want us to believe that the universe popped into existence for no particular reason, so Christine Lagarde wants us to believe that inflation just happens. No reason. It just does.

    I would have thought that somewhere in her education in matters financial, she would have learned that inflation is created by rising prices, which are caused by rising interest rates and the cost of borrowing money. This, in turn, creates a demand for higher wages, which creates even higher prices to compensate for increased costs. And so the dog chases its tail.

    Then, in their distorted wisdom, the central banks raise interest rates to control inflation. Apart from being ridiculously contradictory, it does not solve the problem, but it makes the financial institutions lots more money, and reinforces the financial slavery of the average punter – and just as importantly, keeps his mind off politics and and financial shenanigans. And to that end, Christine Lagarde has become wool-puller in chief.

    Like

    Comment by Bill Francis | November 1, 2022 | Reply

  3. I am not an economist so I am probably wrong, but here it is.

    First the equation:

    The value of a coin is the value of the economy divided by the number of coins

    Then consider quantitative easing. Connect the dots.

    Like

    Comment by Balthasar Gerards | November 1, 2022 | Reply

  4. memo to brainiac banksters, inflation is caused by printing trillions of worthless dollars, there, mystery solved.

    Like

    Comment by Kathy Saladin | November 1, 2022 | Reply


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