The International Monetary Fund cut its global growth forecasts as the euro area’s debt crisis intensifies and warned of even slower expansion unless officials in the U.S. and Europe address threats to their economies.
And how would they “address” those threats?
The IMF report called for U.S. policy makers to find an alternative to planned automatic tax increases and spending cuts that would trigger a recession. Europeans must follow on their commitments for a more integrated monetary union, and many emerging markets can afford to cut interest rates or pause tightening to fight off risks to their economies, the IMF said.
Oh, I see.
So the answer is to continue to print money? To continue to run a tax by the back door instead of up front, thereby putting up false numbers that make people think there is growth when in fact there is not, as all that has happened is that prices have risen?
The IMF, of course, is interested in more debt, more of the time. After all that’s what they sell, just like any other bank. To ignore this is foolish. To refuse to deal with it honestly is suicidal.
There is no solution that involves “indefinite” exponential growth. There will of course be improvements in productivity over time, but that’s a function of human innovation and technological improvement. The common man should get these improvements in his standard of living; they should not be siphoned off by the banksters!
The IMF’s “chief economist”, Blanchard, of course says that these steps “must be taken.” But then again, one should ask a question — would you take advice on which drugs you should consume from a drug pusher’s doctor?
That’s what I thought.