News & Analysis
IMF Solutions Reinforce Problems
IMF: Global economic slowdown is getting worse, US must avoid 'fiscal cliff' ... Updated at 8:30 a.m. ET The International Monetary Fund said the global economic slowdown is worsening as it cut its growth forecasts for the second time since April and warned U.S. and European policymakers that failure to fix their economic ills would prolong the slump. Global growth in advanced economies is too weak to bring down unemployment and what little momentum exists is coming primarily from central banks, the IMF said in its World Economic Outlook, released ahead of its twice-yearly meeting, which will be held in Tokyo later this week. − NBC
Dominant Social Theme: The IMF is concerned.
Free-Market Analysis: The IMF is getting a good deal of play with a worried world forecast. The concern was stated in the IMF's "World Economic Report."
Here's a quote: "A key issue is whether the global economy is just hitting another bout of turbulence in what was always expected to be a slow and bumpy recovery or whether the current slowdown has a more lasting component," it said. "The answer depends on whether European and U.S. policymakers deal proactively with their major short-term economic challenges."
This is a typical elite theme – that only "policymakers" can deal with issues relating to the economy. The idea that the market itself could deal with economic issues is not one the top people at the IMF would be pleased to consider.
In fact, as we've often stated, the entire EU downturn, starting with the economic crisis of 2008 has been a kind of engineered takedown. It began with determined bank lending and ended with a "sovereign crisis."
But EU officials, decades before, are on record as stating that an economic crisis would have to be created in order to strengthen a political union. And that's just what's happening.
The IMF is front-and-center in all this because many of the policies now being applied to the EU's Southern – economically bleeding – flank have been developed by the IMF and now go under the all-embracing nomenclature of "austerity." Here's some more from the article:
Meanwhile, German Chancellor Angela Merkel arrived in Greece on her first visit since Europe's debt crisis erupted here three years ago, braving protests to deliver a message of support -- but no new money -- to a country seen by many as a prime example of Europe's ongoing and entrenched economic woes ...
In an interview with NBC's Andrea Mitchell, IMF chairwoman Christine Lagarde calls for urgent action from lawmakers to turn around the U.S. economy, saying that the combination of automatic tax hikes and spending cuts poses a major threat to the recovery.
The IMF forecast that global output in 2012 would grow just 3.3 percent, down from a July estimate of 3.5 percent. Households could face average $3,500 tax hit if Congress can't avoid 'fiscal cliff'
It also cut its expectations for China in 2012 and 2013 but warned against being overly pessimistic about the prospects of these economies, which were major engines of growth in the global financial crisis.
"Let me be clear. We do not see these developments as signs of a hard landing in any of these countries," IMF Chief Economist Olivier Blanchard said at a briefing, referring to China, India and Brazil.
The IMF said "familiar" forces were dragging down growth in advanced economies -- fiscal consolidation and a still-weak financial system, the same problems that have plagued the world since the global financial crisis exploded in 2008.
"More seems to be at work, however, than these mechanical forces -- namely, a general feeling of uncertainty," Blanchard said in a commentary on the forecasts.
In point of fact, the "familiar forces" dragging it down are generated by Western central banking that prints too much money, causing both a boom and a bust.
The combination of the euro and monopoly central banking are responsible for European ills. The "crisis" is manmade.
Additionally, the US "fiscal cliff" is the result of (badly) engineered socio-economic policy. No matter where one turns to look, it is the modern money system itself that is responsible for the damage the IMF now warns against.
Take a step back and it is easy to see that the great economies throughout the world are all in the grip of recession, depression and inflation. The BRICS, Europe and the US are not going to see renewed economic vitality any time soon.
IMF policies are not improving matters. Raising taxes during bad economic times, as the IMF demands, only makes the problem worse.
If one grants that the elites behind the IMF and the current money system are generally in favor of global government and a global currency then what's going on now begins to make more sense.
While expressing concern over world economic problems, the IMF continues to be a conduit for the difficulties it warns against. It helps create the problems it then warns against.
In a Keynesian central banking environment, the solution to economic ills is held to be continued money printing. But it is excessive money printing that creates the booms and busts that have brought the world's economy to this state.
The IMF's remedy will thus only make things worse. Inflating the money supply will inevitably lead to price inflation.
Conclusion: IMF officials are recommending policies that will only aggravate global economic ills. What's the sense of that?
Posted by Danny B on 10/09/12 09:21 PM
Well, nobody else has posted so, I guess That I will.
We know that the PTB knew ahead of time that no currency union has ever prospered without a fiscal union. We know that a crash is inevitable. Did Britain keep the pound hoping to be insulated? British debt is quite a bit higher than Greek debt. Did London orchestrate this?
We can easily assume that the PTB EXPECT the crash to be their opportunity to gain total financial integration of Europe. I can see 3 possible scenarios.
1. This whole charade is for population reduction.
2. The crash and chaos will result in fiscal union.
3. The crash will result in fragmentation.
The "Nation State" is the successor to the city-state and the confederation. The nation-state is a recent invention;
"Most theories see the nation state as a 19th-century European phenomenon,"
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Reading tells us that Venice and Bavaria and Catalonia, et al want to diverge. We saw the breakup of Yugoslavia. Many of the nation-states were thrown together on arbitrary divisions,, like India-Pakistan. It may be that the nation-state will prove to be transitory. The nation-state agglomerated as an extension of the clan,,, more or less.
The nations-state was a valuable construct in some places at some times. It's a different world now with birth-control, instant communication, rapid travel and mechanized productivity.
The American nation-state has morphed into nothing but a cash-cow for lawyers.
"Over the past decade, the federal government has issued almost 38,000 new final rules, according to the draft of the 2011 annual report to Congress on federal regulations by the Office of Management and Budget. That brought the total at the end of 2011 to 169,301 pages."
The cost of compliance cost is estimated at $ 1.7 trillion.
The EU was just an overlay of another bureaucracy that reduced the GDP of member countries by 20%. It often appears that GOV exists just to make the world a safe and lucrative place for lawyers.
"A U.S. group, Legal Reform Now, claims that more than 15 million lawsuits will be filed in state courts alone by the end of 2012, one new lawsuit every two seconds, one for every 12 adults in America. According to consulting firm Towers Watson, the direct cost of U.S. tort lawsuits in 2009 was $250 billion - that's a little over 1.5% of the entire U.S. gross domestic product."
We will have chaos but, I'm not so sure that agglomeration will be the end result.
It costs money to hold a restive nation-state together. Russia was unable to afford to hold together the U.S.S.R. Could Spain put down fracture movements from the Basques and Catalonians at the same time,,, after their bonds crash?
The IMF MAY have a plan that includes a one-world bank. I SERIOUSLY doubt that they have a working plan on how to do it.
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The IMF may have dreams of an SDR or Amero or something like that. I suspect that it will be rejected by the populace. MUCH will depend on whether or not it is accepted by the carbon industry... . especially in Canada, our main oil supplier. If China offers them a gold-backed Yuan, the IMF is toast.
The productive sector of the economy has no interest in perpetuating the welfare state.
GB slapped a 1 billion tax on the oil industry. In protest, they stopped pumping and GOV lost 1.8 billion in revenue. I believe that the corporate sector will force the reduction of both GOV and finance and welfare.
It will be messey.
Posted by Danny B on 10/09/12 10:10 PM
I forgot the link on British debt;
Click to view link
Reply from The Daily Bell
Posted by Danny B on 10/09/12 10:22 PM
I found my link on bureaucrats and lawyers
Click to view link
Posted by amanfromMars on 10/10/12 04:27 AM
And the DB has intellectual support for their Internet takeover meme from some really astute sources of alternative education and entertainment/edutainment ... ... Click to view link
Reply from The Daily Bell
"Democracy and capitalism are quite compatible as long as voters have poor information. If you put the Internet in the mix and allow it to evolve, sooner or later voters will have better information and the republic will collapse."
Posted by Danny B on 10/10/12 09:23 AM
I have to take issue with this AMFM. All you hard working people need to walk a mile in someone else's shoes. Someone who does NOT work and depends on GOV handouts. After Michigan went bust, everybody pulled out their chart of which states paid the best benefits. Their was an exodus of "black tag" refugees headed for the most generous states.
Months ago, I posted that 52.5 % of Americans depend on a check from GOV. Ron Paul said that it is 53%. Those people will always vote self-interest.
In L.A. we have congresswoman Maxine Waters. I doubt that 5 % of her constituents are employed. She claims that the Reps have a "war on women".
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Giving more info to parasites isn't going to make them vote against their own interests.
Posted by amanfromMars on 10/10/12 01:59 PM
Howdy, danny B,
What does government/do governments propose to do whenever there is no work/not enough work available because advanced technology and the parasitic search for ever increasing corporate profit has sophisticated machinery doing the work of millions of men and women and creating product that no one has cash to buy ... ... which is where everything is headed, is it not, slowly but surely?
What are they going to invent which will deliver peace and prosperity and happinees to the masses, and in so doing, ensure that they have for as long as it is sustained, they have unwavering mass support, which is surely something governments have wet dreams about being so enabled to do. Or would that require that they have a level of intelligence to think up such utopia which clearly they do not presently possess or know where to lease purchase it from, which is what a SMARTR IntelAIgent Service would probably certainly definitely maybe do in a free and/or fiat capitalist market situation to bust intellectually bankrupt markets.
Advanced Intelligence is the Future Killer Asset which trumps and destroys all other pretenders to that leading position.
Posted by Danny B on 10/10/12 09:27 PM
I don't know how they work these things on Mars. Down here, there is NO remedy for efficiency. Also, there is no remedy for stupidity,,,, possibly for ignorance but, not stupidity. Then, there is illiteracy. There is a LOT of it; OLD article
Click to view link
"Sixteen percent of white adults, 44 percent of blacks, and 56 percent of Hispanic citizens are functional or marginal illiterates. Figures for the younger generation of black adults are increasing. Forty-seven percent of all black seventeen-year olds are functionally illiterate. That figure is expected to climb to 50 percent by 1990"
I suggested social credit as opposed to heavy culling. At some point, reproduction should be controlled. I certainly have no answers. Can we send the non-functioning units back to the factory?
Posted by amanfromMars on 10/11/12 01:22 AM
"I suggested social credit as opposed to heavy culling. At some point, reproduction should be controlled. I certainly have no answers. Can we send the non-functioning units back to the factory?" ... . Posted by Danny B on 10/10/12 09:27 PM
Whether it is an answer providing a solution to the ignorance/stupidity/illiteracy problem, I think it is not necessary to say, for such may just invariably cause and encourage others to waste time and effort in unnecessary disagreement, which is just so typical of the problem we would be seeking a solution to answer for us, but SMARTR Media with Beta Televised Serial Programming and Sublime Blockbuster Movie Brain Washing would be a good place to start in Advanced IntelAIgent Missions with NEUKlearer HyperRadioProActive IT.
Fab Foreplay in Future Delivery of Alternative Presents and Virtual Reality with Great IntelAIgent Games Play from and for InterNetworking Giants.
Now, hereby, floated onto the markets, for all of that, and a great deal more yet to be unwrapped/decloaked, is now readily available with Command and Control of Computers and Communications with Creative CyberSpace Master Pilots/Mentor Programs.
And quite perfect for the likes of global news corporations with shining crazy diamond like production teams.
And done proper professionally, can one and does IT run and remotely rule and provide reign to worlds with such AI ProgramMING, which makes the App more than just incredibly valuable and precious.
Posted by Danny B on 10/11/12 11:03 AM
You can't say that the IMF doesn't have a sense of humor. It says that European banks will need to sell $ 4.5 TRILLION in assets through 2013. Pretty funny.
Click to view link