Organisations

“The Chinese have proven the effectiveness of their public banking system in supporting their industries and their workers”

“Japan proposed its model for the former communist countries, and many began looking to it and to South Korea as viable alternatives to the U.S. free-market system. State-guided capitalism provided for the general welfare without destroying capitalist incentive.

Engdahl wrote:”

“The Tiger economies were a major embarrassment to the IMF free-market model.

Their very success in blending private enterprise with a strong state economic role was a threat to the IMF free-market agenda.

So long as the Tigers appeared to succeed with a model based on a strong state role, the former communist states and others could argue against taking the extreme IMF course.

In east Asia during the 1980s, economic growth rates of 7-8 per cent per year, rising social security, universal education and a high worker productivity were all backed by state guidance and planning, albeit in a market economy – an Asian form of benevolent paternalism.”

source:

Neoliberalism Has Met Its Match in China

“US decision to impose added tariffs on more than $300 billion of China trade, and the US Treasury declaring China a “currency manipulator”, global financial markets have reacted with sharp selling.” (source)

Comment:

Of course – China is not a democracy.

Chinese people – but also Europeans – do not enjoy the (sometimes insane) freedoms (of buying shotguns at supermarkets) that US people have (if they would have the money… but private banks can not fund limitless US consumerism).

But yes – less freedom in China – more state control and surveillance, but that is an “official” fact.

An “unofficial” fact is: that western democracies simply do not care about their own laws and engage in mass surveillance unlawfully.

Western politicians make decisions not only against the will of the public – but also to the damage of the public – the average Joe and Jill – in order to exploit exploit and enrich a small elite that can afford lobbyists (the already rich and big companies).

Both “systems” try to manipulate their citizens with propaganda and state created terrorist attacks.

Both systems fail to keep speculation bubbles (housing bubbles) under control.

Housing is essential for people to survive and if they have to spend more than 30% on rent – it is not only unfair and exploitation, it is creating housing bubbles – one that the world has seen burst in 2008/2009 subprime crisis.

Nobody wants to see this happening again but too little is done by politics to prevent it.

In London 40.000 flats and houses remain empty, they are simply for parking the money of the super rich.

In Germany real estate speculations have caused people to leave their home towns and “wander around” because they can not afford the housing anymore in Munich.

Wages are rising in China – not so much in the Western Worlds.

the heart of the issue is a fundamental good that has been driving social and economic inequality for centuries: real estate. https://www.project-syndicate.org/commentary/inequality-global-city-real-estate-by-harold-james-2019-08
the heart of the issue is a fundamental good that has been driving social and economic inequality for centuries: real estate. https://www.project-syndicate.org/commentary/inequality-global-city-real-estate-by-harold-james-2019-08

Bank of North Dakota:

But to have a public bank (at least one) is a good idea.

There would be no Solar Panels in Germany without a public bank.

So, why does “The West” not want to learn and stay a stubborn kid forever?

always ask: Cui bono? = Who profits?

Who profits from:

  • “free market” in all it’s meaning
    • complete dependence on private Banks for private loans
    • abolishment of all (trade) barriers (United States of Europe)
    • companies competing to the death, going bankrupt (to buy them cheap)?

One answer: The super rich – that own the large companies, the monopolists.

https://www.statista.com/statistics/263264/top-companies-in-the-world-by-market-value/
https://www.statista.com/statistics/263264/top-companies-in-the-world-by-market-value/

http://www.williamengdahl.com/

https://www.bloomberg.com/graphics/2019-asset-management-in-decline/

… maybe it’s time to put money to the use it should be intended do: develop mankind peacefully.

International Monetary Funds Chief Economist Olivier Blanchard speaks during the World Economic Outlook (WEO) press conference, October 8, 2008 at the IMF Headquarters in Washington DC. The world economy is entering a major downturn in the face of the most dangerous financial shock in mature financial markets since the 1930Õs, according to the WEO. © IMF Staff Photographer Eugene Salazar

Economists: Ooooops!

Greece! Spain! Italy! Portugal! France! Everyone! Listen Up:

…few dead pensioners, closed hospitals and lost jobs later:

“Economists were wrong about Austerity!”

🙈

No! Really? Why is “our leadership” this kind of incompetent?

Christine Madeleine Odette Lagarde (French: [kʁistin madlɛn ɔdɛt laɡaʁd]; née Lallouette, IPA: [laluɛt]; born 1 January 1956) is a French lawyer and politician serving as Managing Director (MD) and Chairwoman of the International Monetary Fund (IMF) since 2011.

Lagarde joined Baker & McKenzie, a large Chicago-based international law firm, in 1981.

IMF’s lending program for distressed European countries was “a very massive plan, totally unexpected, totally counter-treaty, because it wasn’t scheduled in the treaty that we should do a bailout program, as we did.” She also said, “we had essentially a trillion dollars on the table to confront any market attack that would target any country, whether it’s Greece, Spain, Portugal, or anybody within the eurozone.” With respect to the French economy, she stated that besides short-term stimulus efforts: “we must, very decisively, cut our deficit and reduce our debt.”[45]

Liberte, Fraternite, Austerite

will get right-wing radicals elected.

Christine at her time at the IMF was pretty much pro Austerity: Latest News: (2013) “OOOPS! We were wrong”

and: HOW ON EARTH is the President of the ECB Elected?

“the European Council, de facto by those who have adopted the euro, for an eight-year non-renewable term.[2]”

Who the fuck is the European Council?

comprises the heads of state or government of the EU member states, along with the President of the European Council and the President of the European Commission

WHAT?

“In a rare volte-face, the International Monetary Fund this week admitted that it grossly underestimated the impact of the austerity regime it advised Europeans to adopt.

A paper authored by IMF chief economist Olivier Blanchard found that every dollar that governments cut from their budgets actually reduced economic output by $1.50.

The IMF forecast originally that economic activity would be reduced by only $0.50 for every $1.00 fiscal spending cut.

Now this is not the IMF’s official position, mind you. But Blanchard, as chief economist, makes the IMF look shame-faced. Indirectly, at least.

Predictably, this has given considerable ammunition to critics of the bitter austerity prescription that has characterised European governments’ fiscal policies.

Economics is known as the dismal science.

But for the IMF’s critics, this egregious forecasting error — upon which so much policy advice was built — is more than a crime.

It’s a mistake.”

and Kennedy once said: “An Error becomes a mistake – if you refuse to correct it”

Will they correct it?

“The fact is that economics is much more of an art than a science.”

And money is much more a “religion” a system of “believe” than you can imagine.

“Econometricians can factor in x amount of data into a model to show outcome y.

Like actors, who are only as good as their scripts, economists are only as good as the data they input.

Go forth and multiply

How did the IMF get it so wrong? Multipliers. Specifically, the wrong ones.

Although the 18th-century physiocrat, Quesnay, formulated the basis of multipliers in economics, John Maynard Keynes is generally credited with the conceptual modernisation and application of the “multiplier effect”.

Briefly, every dollar that’s spent increases aggregate demand, as that same dollar is spent again and again and again.

It’s this fiscal multiplier that the IMF employed to measure the likely effect of budgetary spending cuts.

Fawlty forecasting

To understand multipliers, here’s a brain teaser for you. Imagine we’re in the 19th-century equivalent of Fawlty Towers.

His Lordship arrives at a hotel and requests a room.

“Certainly, m’lord,” replies the manager.

But the man wants to see the room first. He puts his coat in the cloakroom and goes upstairs to take a shufty.

While he’s gone, the manager steals £5 from his wallet.

He then runs down the street and pays off the, er, lady of the night, to whom he owes five quid.

Said lady then hoofs off to the butcher’s to pay off her £5 worth of sausages. The butcher, in turn, heads over to the baker, where his account is in arrears to the tune of a fiver. The baker pays his £5 to the milkman. And the milkman heads to the hotel to pay the manager the £5 he owes on the room he rented there the last time he met up with the shady lady.

Then the manager replaces the £5 he stole from the toff’s wallet.

His Lordship decides the room is not at all like Hampton Court Palace and leaves.

So, goods were produced.

Services were rendered.

Debts were paid.

There were economic outputs.

GDP — in theory — increased.

And all due to one lousy £5 note.

That’s a multiplier for you.

One more thing: in all instances, credit was extended.

You could consider the aristocrat the government.

Or a bank.

Except, unlike governments, banks don’t give away money; they rent it out.

Meanwhile, back at the IMF…

Blanchard calculated that the IMF utilised a multiplier of 0.5.

In reality, it should have been 1.5. In the IMF’s defence, Blanchard argues that the Fund underestimated the extraordinary financial circumstances of the European economies.

In other words, the IMF was too optimistic about the impact of austerity measures upon GDP, and did not expect the effect upon unemployment would be so severe.

The IMF has admitted that its pursuit of austerity was misguided. AAP

Sorry in short – the whole IMF staff should get fired! Christine Madeleine Odette Lagarde should go to jail!

She and her advisors ruined the Greek and Spain economy and were about to ruin that of Portugal and Italy and France, driving many people to the brink of economic existance.

While allowing right wing nationalism to grow like a mushroom – not enough wrong doing for you?

Greece now officially hates Germany.

Thanks a lot.

It is what always happens when people do not have a mind of their own and do not do their own research and rely on “advisors” from McKinsey or god knows from where. those “experts” are none.

Unfortunately: i predict – the incompetent financial advisory IMF/ECB’s biggest crime is yet to come.

this is how incompetent our leadership is – it relies on experts that pretend to be experts – for the money

Portugal is way better off than Greece!

GO FUCK YOURSELF IMF ECB AND MCKINSEY!

http://theconversation.com/we-were-wrong-imf-report-details-the-damage-of-austerity-11533

“Beliefs-driven business cycles”

“Over the years, different generations of economists have entertained the idea that beliefs, and beliefs alone, could be powerful enough to set the economy on a path to expansions and recessions solely determined by expectations of rosy times being eventually fulfilled, or otherwise.”

src: https://bankunderground.co.uk/2019/09/11/great-expectations-the-economic-power-of-news-about-the-future/