Rand, you’re helping feed the fear of the economic boogieman. IMF is predicting world GDP growth of 5% from this year to next and 6% for the next four years after that. In comparison, the Great Depression had negative growth for years resulting in the same US GDP in 1929 and 1939 and less in all the years in between.
Don’t buy in to the myth that the economy is doing bad. It may not be boom time and there are many people who want more work, but if we use or promote words to make it sound like emergency, we facilitate government intervention.
What’s the IMF’s track record at economic forecasting?
The issue is jobs rather than GDP. There will most likely be a jobless recovery, followed by a concerted attack by private investors on state treasury bonds. A lot of people will be trying to make money by shorting treasury bonds of economically more fragile states. If they succeed they will keep doing it to increasingly larger states, starting a chain reaction that will cripple the world economy.
The reaction to this in Europe will most likely end up in a turn to ultranationalist far-right or far-left parties, as everyone will perceive the current moderate market liberal centrist parties as “soft”. Anyone who runs on a platform of confiscating wealth from the rich and getting everyone a job will win. This will likely lead to corporatism or statism of some sort. Not a pleasant thought but I can see it happening. Again.
Chain reaction. How often has that happened?
I’m not sure about the IMF, but economists have predicted 15 out of the last 10 recessions.
Rand, you’re helping feed the fear of the economic boogieman. IMF is predicting world GDP growth of 5% from this year to next and 6% for the next four years after that. In comparison, the Great Depression had negative growth for years resulting in the same US GDP in 1929 and 1939 and less in all the years in between.
Don’t buy in to the myth that the economy is doing bad. It may not be boom time and there are many people who want more work, but if we use or promote words to make it sound like emergency, we facilitate government intervention.
What’s the IMF’s track record at economic forecasting?
The issue is jobs rather than GDP. There will most likely be a jobless recovery, followed by a concerted attack by private investors on state treasury bonds. A lot of people will be trying to make money by shorting treasury bonds of economically more fragile states. If they succeed they will keep doing it to increasingly larger states, starting a chain reaction that will cripple the world economy.
The reaction to this in Europe will most likely end up in a turn to ultranationalist far-right or far-left parties, as everyone will perceive the current moderate market liberal centrist parties as “soft”. Anyone who runs on a platform of confiscating wealth from the rich and getting everyone a job will win. This will likely lead to corporatism or statism of some sort. Not a pleasant thought but I can see it happening. Again.
Chain reaction. How often has that happened?
I’m not sure about the IMF, but economists have predicted 15 out of the last 10 recessions.