Asia Times: Welcome to the G-8 world of illusion

[marmar]

Welcome to the G-8 world of illusion
By Hossein Askari and Noureddine Krichene


The Group of Eight (G-8) finance ministers in their meeting in Lecce, Italy, last weekend announced that their economies had stabilized and as a result they were preparing for their "exit strategies" from their prevailing unorthodox monetary and fiscal policies:

We discussed the need to prepare appropriate strategies for unwinding the extraordinary policy measures taken to respond to the crisis once the recovery is assured ... These "exit strategies" which may vary from country to country are essential to promote a sustainable recovery over the long term. We have taken forceful and coordinated action to stabilize the financial sector and provide stimulus to restore economic growth and there are signs of stabilization in our economies, including a recovery of stock markets, a decline in interest rate spreads, improved business and consumer confidence, but the situation remains uncertain and significant risks remain to economic and financial stability.

Do they know something the rest of us don't? Let's look at general economic conditions in the G-8. As a result of excessive money expansion and largely negative interest rates, they have fallen into the grips of the worst financial crisis in the post-World War II era.

Economic indicators in crisis-stricken G-8 members have been deteriorating since August 2007. Banks had to be bailed out at a fiscal cost of trillions of dollars and are still saddled with additional trillions of dollars in toxic assets. Real growth in gross domestic product (GDP) has become negative almost everywhere, and unemployment will probably continue to increase into next year. Industrial production has fallen sharply. Exports have plummeted. Consumers are defaulting at high rates on their debt. Real incomes of workers have been dramatically 2eroded and impoverishment is growing.

Recently, commodity prices have once again come under renewed pressure and exchange-rate volatility is again on the rise. Yet ignoring these general indicators, these G-8 policymakers have rushed to announce that their economies have stabilized, recovery is well under way and they are preparing to bury this phase of their policies and move on! ..........(more)

The complete piece is at: http://www.atimes.com/atimes/Global_Economy/KF19Dj02.html

[RandomThoughts]

1. You may be asking the wrong questions.

Do they believe they have consolidated wealth and power.

You assume they think like you do.

[marmar]

2. Like who? I posted a story from the Asia Times.

n/t

[RandomThoughts]

3. Ok, My response was to the writer of the article then.

Sometimes people try really hard to figure out what people are thinking, everything they do seems to not make sense.

Then if you realize they have different priorities it all makes sense.


I guess I was not agreeing they are in illusion, they just want one thing, but speak to people pretending like they want something else. So there words rarely match their actions.