The IMF is out with a new seven minute YouTube propaganda piece (see below) that stars former World Bank president and globalist Joseph Stiglitz. I don't think I have ever seen more confusion in seven minutes of presentation in my life. If you want to understand the talking points that the one worlders are currently using, Stiglitz knows them all and is able to spout them out as though they make sense at, as he says, a "high level".
He tells us that a consensus has been reached after the recent financial crisis that "free markets don't work". Since the crisis was caused by Federal Reserve manipulation of the money supply and interest rates, how Stiglitz can believe that we were ever near a free market with this Federal Reserve manipulation is a mystery that may never be answered.
He then says that the crisis proved that inflation at low levels may not be a good thing. Well, actually, he is correct since there should be no monetary inflation. But what he is calling for is more monetary printing than what occurred under Alan Greenspan. Money printing caused the real estate bubble!
He then goes on to say fiscal policy worked. He's correct here, if you work for Goldman Sachs, but if you are part of the 10% of the nation that is unemployed, or part of the millions who are losing their homes, fiscal policy is not so great.
Stiglitz then states that interest rates are at zero and therefore monetary policy doesn't work anymore. As I have discussed several times, interest rates are not at zero. The Fed Funds rate, the discount rate, the Treasury Bill rate are low, but they are not at zero. It is the interplay between these rates which sets monetary growth. In other words, relative rates have the impact and the Fed can and continues to manipulate these relative rates.
Stiglitz goes on to say that economic models didn't work during the crisis and they didn't predict the crisis. Here again he is partially correct, but he should really speak for himself.
New York Fed economists, McCarthy and Peach who famously argued that there was no housing bubble (just before the housing market crashed) actually based their embarrassing forecast on the theories developed by Stiglitz. Throughout the paper they specifically make clear they are building on the work of Stiglitz.
This was a failure of Keynesian models and, in particular, those built on the theories of Stiglitz. It was not a failure of the complete economics profession. Walter Block has assembled a list of economists who used Austrian Business Cycle Theory to forecast and warn about the housing bubble.
Stiglitz in the clip below also talks about "global growth" as though failures at the national level are not enough. It appears he wants to make the entire world choreographed for one huge business cycle.
He even brings up a new globalist phrase I had never heard of before, "the global reserve system". Is this another signal that the globalists know that the End the Fed movement is picking up traction and it is their start at attempting to co-opt the movement by a future sly slick call for ending the Fed, to be replaced with a "global reserve system"
Stiglitz then disses the dollar and bows before the almighty SDR "currency" which is printed up by the IMF. He suggests is should replace the dollar as the world reserve currency in the new "global reserve system".
He goes on to say that the financial system is unstable and points to the huge concentration in the banking sector. He correctly points out that this is caused by government policies which create moral hazard, which causes few to be concerned about the money they place with large banking institutions, since, as he readily admits, these institution continue to be Too Big To Fail.
But his solution is not to remove the government programs that create the moral hazard, but to call for more regulation limiting bank size and setting limits on excess risk taking at banks. Translation: He wants to protect the elitist large banks from competitors that may grow in size and he wants to direct risk, which means he wants to direct banks to put their money in "safe" near bankrupt government securities.
And there you have it, seven minutes with an elitist global economist.Watch at YouTube
He then says that the crisis proved that inflation at low levels may not be a good thing. Well, actually, he is correct since there should be no monetary inflation. But what he is calling for is more monetary printing than what occurred under Alan Greenspan. Money printing caused the real estate bubble!
He then goes on to say fiscal policy worked. He's correct here, if you work for Goldman Sachs, but if you are part of the 10% of the nation that is unemployed, or part of the millions who are losing their homes, fiscal policy is not so great.
Stiglitz then states that interest rates are at zero and therefore monetary policy doesn't work anymore. As I have discussed several times, interest rates are not at zero. The Fed Funds rate, the discount rate, the Treasury Bill rate are low, but they are not at zero. It is the interplay between these rates which sets monetary growth. In other words, relative rates have the impact and the Fed can and continues to manipulate these relative rates.
Stiglitz goes on to say that economic models didn't work during the crisis and they didn't predict the crisis. Here again he is partially correct, but he should really speak for himself.
New York Fed economists, McCarthy and Peach who famously argued that there was no housing bubble (just before the housing market crashed) actually based their embarrassing forecast on the theories developed by Stiglitz. Throughout the paper they specifically make clear they are building on the work of Stiglitz.
This was a failure of Keynesian models and, in particular, those built on the theories of Stiglitz. It was not a failure of the complete economics profession. Walter Block has assembled a list of economists who used Austrian Business Cycle Theory to forecast and warn about the housing bubble.
Stiglitz in the clip below also talks about "global growth" as though failures at the national level are not enough. It appears he wants to make the entire world choreographed for one huge business cycle.
He even brings up a new globalist phrase I had never heard of before, "the global reserve system". Is this another signal that the globalists know that the End the Fed movement is picking up traction and it is their start at attempting to co-opt the movement by a future sly slick call for ending the Fed, to be replaced with a "global reserve system"
Stiglitz then disses the dollar and bows before the almighty SDR "currency" which is printed up by the IMF. He suggests is should replace the dollar as the world reserve currency in the new "global reserve system".
He goes on to say that the financial system is unstable and points to the huge concentration in the banking sector. He correctly points out that this is caused by government policies which create moral hazard, which causes few to be concerned about the money they place with large banking institutions, since, as he readily admits, these institution continue to be Too Big To Fail.
But his solution is not to remove the government programs that create the moral hazard, but to call for more regulation limiting bank size and setting limits on excess risk taking at banks. Translation: He wants to protect the elitist large banks from competitors that may grow in size and he wants to direct risk, which means he wants to direct banks to put their money in "safe" near bankrupt government securities.
And there you have it, seven minutes with an elitist global economist.Watch at YouTube
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