Nothing new to readers of this blog…
And then we have this from the man that not only single-handedly made the fiscal situation worse but the very man that blackmailed congress by painting an outcome of fire and brimstone if they did not approve the $700Billion he was asking for…
And from my favorite fiat money piñata…
… and although in this article it is not him speaking, we know he endorses the idea set forth by “Mr Blanchard called for extra monetary stimulus as the first line of defence if “downside risks to growth materialise”, but said authorities should not rule out another fiscal boost, despite debt worries. “If fiscal stimulus helps avoid structural unemployment, it may actually pay for itself,” he said.”
I know I keep going over the same ground over and over again. But that’s because main stream politicians and economists drone-on about the same thing over and over again. Everybody and their cousin wants stimulus of one variety or another.
As far as I am concerned, I just wonder why nobody that matters has noticed that this time around doing more of the same may actually be counterproductive. Every single field of human endeavor is subject to the study of efficiency. Whether in science or agriculture or engineering, efficiency is a key parameter that is sliced, diced, studied and evaluated at all levels. So why shouldn’t the same degree of scrutiny apply to the monetary system? Why is it that main stream politicians and economists cannot see that money too conforms to parameters of efficiency?
In 100 hundred years since a select number of banks imposed our modern monetary system, the efficiency of money has been steadily declining. Today, in the absence of new markets or new currencies that could be absorbed in the US$ monetary system, creating and spending more money no longer gets us the desired result. The metrics are there and are available for anyone that wants to see:
At a time when just about every single sovereign nation has spent all the money they have plus all the money they don’t have and will not have for decades to come, simple arithmetic says that we should try another tack.
But of course. In a democracy, spending cuts are politically untenable. Particularly when governments have played fast and loose with public finances for decades so that today larcenous and criminal strategies are necessary just to maintain the appearance of normality:
“Today, the US Treasury department disclosed that its August deficit was a slightly better than expected $90.5 billion, compared to $103.6 billion in the year prior. What received less fanfare was that the comparable increase in debt in the month of August 2010 was $212 billion, compared to $143.6 billion a year earlier. In other words, more than twice the the deficit had to be issued in the month of August. ”
So, what do you think our politicians will do this time around?
You know what I think: 2013/2015 latest…