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I M F U-Turn: Austerity May Not Be Such A Good Idea After All

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http://www.telegraph.co.uk/finance/economics/8121048/IMF-warns-austerity-measures-may-have-to-be-reconsidered.html

IMF warns austerity measures may have to be reconsidered
Government austerity measures may have to be rethought if the recovery slows, the International Monetary Fund (IMF) has warned.

At least they have covered themselves by saying austerity may or may not be a good thing. When the benefit of hindsight is available to them they can say they were right.

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Austerity never works wherever its tried. Because an economy is like yin and yang. An economy can't have everyone working harder and buying less. People including PHD economists are always taking what makes sense on an individual level and thinking it will make sense on a societal level.

Imo there is only two options.. 1) borrow and print and spend a ton of new money to get things rolling. Eg.. the Chinese stimulus plan in 2008.

2) default on debts, clear the slate and start rolling again. The Argentina plan.

Edited by aa3

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Actually, it ain't a U-Turn. The IMF has endorsed both Darling's original slower cuts and Orborne's austerity package. It's only that in this country the majority of the on-message Tory media have chosen to highlight one endorsement above the other.

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Austerity is about borrowing less.

the IMF is talking about less SPENDING being bad for an economy ( the figures that is).

Its hard to borrow when you are having no spare wealth against which to monetise.

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Austerity never works wherever its tried. Because an economy is like yin and yang. An economy can't have everyone working harder and buying less. People including PHD economists are always taking what makes sense on an individual level and thinking it will make sense on a societal level.

Imo there is only two options.. 1) borrow and print and spend a ton of new money to get things rolling. Eg.. the Chinese stimulus plan in 2008.

2) default on debts, clear the slate and start rolling again. The Argentina plan.

Canada doesnt count then? Check your facts aa3

Edited by angrypirate

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The IMF just simply backs all the horses.

A couple of months ago they were upgrading us as a result of our austerity package that would reduce our debt without any real consequences in the economy as the huge job cuts would simply be transferred to the vibrant private sector. And people believed that fairy tale end to the Brown decade of financial folly?

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Austerity never works wherever its tried. Because an economy is like yin and yang. An economy can't have everyone working harder and buying less. People including PHD economists are always taking what makes sense on an individual level and thinking it will make sense on a societal level.

Imo there is only two options.. 1) borrow and print and spend a ton of new money to get things rolling. Eg.. the Chinese stimulus plan in 2008.

2) default on debts, clear the slate and start rolling again. The Argentina plan.

Though the economy quite happily functioned with everyone working less and buying more, which is what more or less happened in the last decade, particularly here in the UK. Thanks new Labour! :angry:

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  • 146 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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