According to news reports, finance ministers from the world’s leading economies worked on through last weekend to line up a deal that will see the world embark on a second global rescue package worth nearly $2 trillion in April this year.
They claim this is needed to stop the euro-zone sovereign debt crisis from spreading and putting at risk the tentative recovery.
Germany said it would make a decision some time in March on strengthening Europe’s bailout fund, a move other Group of 20 countries say is essential to clear the way for throwing extra funds into the International Monetary Fund.
I have been doing a little research and found that the nations coping best with the economic slump are those that did not join in the first
money priniting exercise stimulus. The point about such a project is it contains the seeds of it’s own destruction. Printing money is not a question of revving up the printing presses. Money these days exists computer databases and only shows up in spreadsheeds.
There is very litle real money around.
So when we say ‘printing money’ it means governments borrowing money on which they must pay interest. And the more money governments borrow to finance their profligate spending, the more interest they must pay.
This is how Greece got into it’s current state. The interest that nation must pay on its 1,7 trillion debt at current interest rates of around 7% is 120 billion. With a GDP of about 220 billion and falling the nation is in a spiral of debt. It must take on more debt by borrowing to pay the interest on existing debt. Simples.
So long as economists and politicians choose to ignore this we are all on the Greece – y slope to the same fate.
What makes matters worse is nobody in their right mind would lend to governments these days so governments are buying in their own bonds, i.e. borrowing from us poor punters. And they are not giving any guarantees when or even if they intend to pay us back.
Don’t you just love the arrogance of economists and their detatchment from anything remotely resembling reality. They’re all scum sucking crackfarts, they really are. Little Nicky Machiavelli has said this many times and today there’s a mainstream journalist taking up the theme in response to an economics academic who says that anyone who does not have a PhD in economics should not be allowed to express an opinion on the subject as only verrrrrrry highly qualified economists can understand economics. (Of course this could be a conspiracy of academics and The Thought Police to silence bloggers).
Very highly qualified economic professors, now let’s see, aren’t they the people whose crackpot theories dumped up in the shit mess we’re in? Well it’s no wonder, these people are really stark raving bonkers in the head. For a start there is nothing hard about economics. As the Dickens character Wilkins Micawber put it: Annual income twenty pounds, annual expenditure nineteen pounds and 95p, result happiness. Annual income twenty pounds, annual expenditure twenty pounds and five p, result misery. That’s economics sorted.
Unfortunately politicians are stupid enough to listen to the self worshipping imbeciles who have spent their entire working lives cocooned in the unreality bubbles of University faculties. Nobody should ever listen to economists, particularly the ones who run the US Federal Reserve and who are now advising the Imbecile In Chief Obama to pawn America to loan sharks and raise money for “stimulus spending” (aka pork barrel politics and vanity projects).
Ambrose Evans Pritchard, economics writer for The Daily Telegraph says:
“Like a mad aunt, the Fed is slowly losing its marbles. Kartik Athreya, senior economist for the Richmond Fed, has written a paper condemning economic bloggers as chronically stupid and a threat to public order. Matters of economic policy should be reserved to a priesthood with the correct post-doctoral credentials, which would of course have excluded David Hume, Adam Smith, and arguably John Maynard Keynes (a mathematics graduate, with a tripos foray in moral sciences).”
Read full article
Time To Shut Down The US Federal Reserve? by Ambrose Evans Pritachard of the Daily Telegraph
The Daily Stirrer: More Stimulus