IMF:- PRINT baby PRINT!

[Mega]

http://www.telegraph.co.uk/finance/f...rd-spiral.html
Mike

[Starving Steve]

Re: IMF:- PRINT baby PRINT!

The trouble with Europe began with the first bail-out request. Meeting that request just opened the door for the second bail-out request, etc. And now the PIIGS play the game of solvency so long as the you pay to bail them out. It's like an old juke box: the music plays on, so long as you keep dropping in coins.

What is strikingly interesting about this state of affairs is that the world's central bankers and the world's leading economists encouraged this charade by funding this charade. So the music plays on......

Wasn't it Hudson here at itulip who demanded more bail-outs? "Solidarity with those in the streets," and all that rubbish.... And Bernanke and Greenspan encouraged Trechet to fund the first round of bail-outs, then the second, and the third, and now the fourth....... It's an amazing story of incompetence at the highest levels! Even more amazing is that this bunch of economist fools made the same mistakes with bailing-out the countries of Latin America in the 1970s and the 1980s. Does anyone remember the charade with the IMF in bailing-out Bolivia, Argentina, Brazil, Chile, Peru, Nicaragua, Mexico, Paraguay, among other nations? And then the IMF itself had to be bailed-out by the Federal Reserve Bank in the U.S, to keep the whole charade going. Remember Greenspan at the Fed in the 1980s authorizing the bail-outs and the consequent re-fundings of the IMF?

"Solidarity with those in the streets," and those "starving masses in the streets" just happened to own fabulous estates on hilltops overlooking the blue Mediterranean Sea, etc..... [Sic,] "The music plays-on so long as you pay."

Even a pawn shoppe owner has the common sense to loan only on solid collateral and then only after dictating the terms of the loan. But after a Princeton or Harvard education in economics, that common sense is lost, and replaced by abstract economic theory and mumbo-jumbo econometric models.

[goodrich4bk]

Re: IMF:- PRINT baby PRINT!

The trouble with Europe began with the first bail-out request.

You're absolutely correct. It's the Wile E. Coyote principle. He should have looked down when he was still near the cliff edge. A little adjustment of speed and direction would have saved him. Instead, he waited too long and no amount of adjustment saved him.

Similarly, corporate subsidies, easy money, leverage and now bailouts of leveraged positions pushed us far past the cliff edge of sustainable growth. There is no turning back, only turning down. The West's political and corporate elites have no solutions other than more debt because they've spent their entire careers arguing the benefits of more debt and more debt-based money with which to service more debt.

[c1ue]

Re: IMF:- PRINT baby PRINT!

Wasn't it Hudson here at itulip who demanded more bail-outs?

No, that was Krugman.

Dr. Michael Hudson is the one who said: if you're going to spend trillions of dollars to help the economy, why direct it to the ones who broke it to start with: the banksters.