OECD pushes for global Keynesian fiscal stimulus to spring low-growth trap

[interestrateripoff]

http://www.independent.co.uk/news/business/news/oecd-global-keynesian-fiscal-stimulus-catherine-mann-donald-trump-a7443251.html

Quote

The Organisation for Economic Cooperation and Development has made its strongest call yet for advanced economies, including the UK, to stimulate their economies by spending more and taking on more debt, even where debt burdens are already elevated relative to GDP.

In its latest report, the influential multilateral think tank stresses the global economy remains in a “low-growth trap” with output expanding by only around 3 per cent a year.

Catherine Mann, the OECD’s chief economist, said that “fiscal initiatives” – meaning discretionary higher spending by governments – could “catalyse private economic activity” and push the global economy’s growth rate to 3.5 by 2018.

Yay the plan is more debt, followed by a dose of more debt.  Having had a crisis created by debt the answer obviously is more debt.

For those in doubt you create growth by more debt!!!

[Noallegiance]

If the central banks and governments listen to this kind of advice, these comments could signal the long-awaited pushing off the self destruct button.

Yay.

[zugzwang]

I'm particularly fond of David Stockman's description of the OECD, World Bank, Federal Reserve etc.

'The world's economic institutions are run by people who believe in monetary fairy-tales.'

[Si1]

No skin in the game. Thinking about their banker chums.

[Blod]

34 minutes ago, Si1 said:

No skin in the game. Thinking about their banker chums.

Exactly. They could hardly say any different.

[TheCountOfNowhere]

I truly despair.

[Little Frank]

16 hours ago, interestrateripoff said:

http://www.independent.co.uk/news/business/news/oecd-global-keynesian-fiscal-stimulus-catherine-mann-donald-trump-a7443251.html

Yay the plan is more debt, followed by a dose of more debt.  Having had a crisis created by debt the answer obviously is more debt.

For those in doubt you create growth by more debt!!!

GFC was mostly a crisis of private financial sector debt. Specifically bank b/sheets.

It wasn't a crisis of public sector debt. If it were governments wouldn't be borrowing at 300 year low rates.

You're welcome

 

 

[mikthe20]

2 hours ago, Little Frank said:

GFC was mostly a crisis of private financial sector debt. Specifically bank b/sheets.

It wasn't a crisis of public sector debt. If it were governments wouldn't be borrowing at 300 year low rates.

You're welcome

 

 

This doesn't mean the next crisis won't be due to massive public sector debt.

[GrizzlyDave]

Plenty of people (myself included) want to invest their money in something that gives a decent return. Property is one of the only things that has paid a decent return.

What we need (Brakespear) is opportunities to invest in.

Imagine crowd funding on steroids; where you could club in to build a new runway for Heathrow, or a new hospital or motorway. Maybe we need tolls on motorways, I don't know.

What I do know is that we don't need to run the printing presses, we need to create opportunities for savers to get a better return through investing in infrastructure and other things that will make the planet better.

[billybong]

They ought to have a word with the BIS the organisation with all the main central bankers on the board of directors.  Even they admit the policies have failed except to line their own pockets but apparently the central bankers don't talk to their own central banks never mind reflect on BIS research themselves.

Steve Keen published another interesting video recently on the issue of debt.

 

 

 

 

 

Edited November 29, 2016 by billybong

[winkie]

20 hours ago, interestrateripoff said:

For those in doubt you create growth by more debt!!!

I doubt that will work forever......so in order to spend it into the economy will have to borrow it because unable to earn it......so where does all this debt go?....'cause it is not going into working people's pockets.