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Wednesday, September 21, 2011

IMF announce that the end is nigh - time to double dip that recession

The International Monetary Fund has just announced that the end is nigh. That's right, the four horsemen of the Financial Apocalypse, are galloping our way as the low tax deregulation Milton Friedman Free Market dogma that crashed the 2008 global economy finally brings all the vampire chickens of death home to roost.

Turns out all that corporate debt our Governments picked up as Sovereign Debt won't work after all. That sharp pain your feeling in your stomach right now is Adam Smiths invisible hand punching you in the guts.

Note though even the IMF's gloomy forecast is best case scenario. They predicted 2.5% US growth this year, now they are forecasting 1.5%, and that 1.5% will only happen if the US can lift it's current weak growth rate of .7%, so actually, it can get worse, a lot worse.

Who other than John Key sells precious assets off in a market as turbulent as this?

Why we are adopting more free market ideology when that free market ideology just blew its brains out all over the floor?



At 21/9/11 11:06 am, Blogger dave said...

European meltdown coming

At 21/9/11 11:15 am, Blogger n.kirkland63 said...

The only reason that it hasn't been a continuous slide downwards is that the modern robber barons called banks stole trillions in government handouts in order that they not fail when they should have. Perhaps then, governments would have the money to enrich their peoples lives while these 'Gnomes of Zurich' took the high dive of their glass towers...

At 21/9/11 11:20 am, Blogger Ben said...

OK, so if we accept the position that capitalism is fundamentally flawed and free market ideology has lead us into this mess, how do you propose we fix it, Bomber?

What are the first few steps you'd take to address the issue?

I'm genuinely curious, as complaining about what's happening is one thing, but offering solutions is quite another.

At 21/9/11 12:29 pm, Blogger Shona said...

Ezi Ben,
First step is a Financial Transaction Tax.
Second step is to invest in jobs.
How do you do that???
Invest in Science and technology and Education.Provide tax breaks for the private sector whoparticipate but it shoud be lead by the state.
rebuild and upgrade infra structure.i.e. Public transport systems.
Tax the munitions industry.( especially high tech )heavily.
Fund State Broadcasting.
Provide State funding for the arts
Tax breaks for those employers who provise viable training for youth(under 25's)
Regulate banking.
Repeal the reserve bank act.
Manage the exchange rate.
Disband Treasury.
Cease state funding for Economics and Commerce degrees for 10 years.
Use the Kyoto Protocols to transform agriculture.
Provide tax incentives for rural landowners and free agricultural advice i.e.Make MAF do it's job properly and employ the people to do it.
Provide Free labour (those on unemployment benefit)to farmers to plant woodlots.Use arborists/ tree experts to oversee these schemes.
Also train rural unemployed in the poisoning and trapping of possums.Weed and other pest control.
Fund the Conservation Dept properly to enable this.
So you see Ben it's not difficult.

At 21/9/11 2:03 pm, Blogger JonL said...

"Cease state funding for Economics and Commerce degrees for 10 years."

Oooooh - I like that one - and include Law degrees in that as well!

At 21/9/11 2:36 pm, Blogger Ben said...

I didn't say it was diffiult, Shona. I just wondered what Bomber would do if he had inherited this particular mess of an economy.

I'm reasonably sure a financial transaction tax will net little benefit, but agree that the only way to stimulate the economy is job creation, and clearly the private sector aren't interested in doing that (as they're shipping all our jobs overseas, and if they're not doing that they're importing overseas workers to do jobs cheaper than kiwi workers.)

At 21/9/11 4:37 pm, Blogger fatty said...

dey stealing our jobs!

At 21/9/11 4:39 pm, Blogger AAMC said...

Direct, participatory, corporate free, Social Democracy.


And perhaps poisoning the food at the next Builderberg soiree!

At 21/9/11 6:36 pm, Blogger Tim said...

They used to string em up from lampost cross-bars and then adopt reallty stupid alternative systems of gubbamint when times were really tough.

Shape of the future? Oh Dear, How sad for the culprits.
I once saw a definition of treason which was all about jeapardising a state's economic or social well-being.
Last night I saw Michael Faye pop his head up again.
Left me wondering what ever happened to David Ritchwhite.

When the shit does eventually hit, I hope they have shoes THIS high, 'cos I wouldn;t want to be in them, and never have

At 21/9/11 10:45 pm, Blogger Nitrium said...

Ludwig von Mises IMO correctly predicted:

“There is no means of avoiding the final collapse of a boom brought about by credit (debt) expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit (debt) expansion, or later as a final and total catastrophe of the currency system involved.”

At 22/9/11 10:14 am, Blogger Tar and Feather The Bastards said...

Shona #3 . .That sounds a lot like what hone was espousing at Aranui High School last night in ChCh. . . Vote Mana if only to send a scare into labour to lift their game - personally I dont think they can/will . .they have become national "lite" over the last 30 years,weeded to the neoliberal "torrent up" not trickle down economics

At 26/9/11 12:17 am, Blogger Frank said...

Mathew Hooten blamed the recession on welfare policies in every OECD country.

That's right, folks; welfarism.

Because as we know know, it was beneficiaries sitting in the Boardroom of Lehmann Bros that caused it's collapse in September 2008.

Bad, bad benes! *waves wooden spoon in disapproving manner*


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