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marmar

(76,982 posts)
Wed Jul 10, 2013, 08:38 AM Jul 2013

The Vicious Global Circle


from the Working Life blog:



The Vicious Global Circle
Posted on 09 July 2013.


A basic economic truism: if people don’t have money to spend, stuff won’t get bought. Sounds like a Yogi Berra observation? Anyway, it’s just another day showing why the idiots running economic policy are, well, idiots.

A drop (behind The Wall Street Journal pay wall):

China posted a surprise drop in exports in June amid slack global demand, revealing further weakness in a driver of growth for the world’s second-largest economy.

Exports in June fell 3.1% from a year ago after an already anemic rise of 1% year on year in May, according to data released Wednesday. That was considerably worse than the expectations that called for a rise of just over 3%.


So, let’ think about this. Governments around the world — from Europe to the U.S. — have been engaged in an orgy of government spending cuts. Stupidly so in the middle of high unemployment. Governments should be spending collectively trillions of dollars more to create jobs, not worry about non-existent inflation or even high government debt (which isn’t even high in many countries like the U.S.). ......................(more)

The complete piece is at: http://www.workinglife.org/2013/07/09/the-vicious-global-circle/#sthash.ELonFT2X.dpuf



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The Vicious Global Circle (Original Post) marmar Jul 2013 OP
Yes, the austarians are leading the world into deflation. If you already have tons of $$$ byeya Jul 2013 #1
du rec. xchrom Jul 2013 #2
 

byeya

(2,842 posts)
1. Yes, the austarians are leading the world into deflation. If you already have tons of $$$
Wed Jul 10, 2013, 08:43 AM
Jul 2013

deflation isn't bad because you can buy real estate and art work on the cheap.

Regarding the Great Depression, Henry Ford said, "The times aren't that bad if you have money"


We must protect the rentier class at all costs seems to be the economic imperative.

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