World Economic Recovery
Isaac Hayes - 17-Oct-2009According to various high profile people and Governments the world economy is in a recovery, yet deep structural problems have not at all been solved, and the continued tweaking of the economy in the Western world is slowly but surely destroying our standard of living.
No one seems to worry about the consequences of money printing. The recovery is clearly not real, and its still unclear how we will create jobs to get the economy growing again, or maybe they have no intention of going back to the same growth pattern of former years, which would be a good thing, depending on which country you live in.
The financial system remains as fragile, as last year, yet smoke and mirrors distort that picture, and how any serious person can value any asset is beyond me.
It seems about the only safety one has is to trade in the same asset class one holds.
Current stimulus equates to a future tax liability for all tax payers, which will become a concern next year. The IMF says less than half of the nearly $4 trillion in losses since 2007 have been realized by financial institutions, at the same time the IMF wants financial institutions to rebuild their capital and stabilize earnings without Government help.
Current government borrowing (money printing) draws away capital from businesses that might use it to invest in productive projects that generate a real return, in other words the government's borrowing sucks away capital from the private sector, which stinks of totalitarian rule, where the government recognizes no limits to its authority and strive to regulate every aspect of public and private life.
Totalitarian regimes maintain themselves in political power by means of an official all-embracing ideology and propaganda disseminated through the state-controlled mass media, currently maybe under the banner of climate change policies, which merely just by chance have been running adjacent to the world economic crisis by pure chance (not?), of course the mass media is not state controlled and we don't have a Totalitarian government either.
