The IMF and All The Other Losers


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    Andre Kertesz Bumper cars at amusement park in Neuilly-sur-Seine, near Paris 1930 I read a lot, been doing it for years, about finance and affiliated
    [See the full post at: The IMF and All The Other Losers]

    Ken Barrows

    I find it amusing that economists never put growth in context, e.g. output/income versus debt. The economist can add but not subtract.


    I’m holding out that the most likely scenario over the next 2 or 3 years is a virtual stall GDP wise and so continued unease, but no earthquakes. This is contingent on the ‘fiscal expansion’ talked about by the every economist and central banker and continued QE by central banks to soak up the new paper and will also include more purchases of corporate debt which will keep financial market values from falling and keep weak corporations humming along on borrowed money.

    Others can disagree on the probability of such but it isn’t zero.

    There has never been a recession when systematic credit is expanding and there has never been a depression, for want of a better term but you know what I mean, a large sudden contraction in demand and jobs, without a financial panic where liquidity in the financial markets fails suddenly.

    Trump for all his bluster is likely to be a super fan of money ‘printing’ in every possible way and a friend of the banking giants when it is explained to him the country is toast if he isn’t nice to them and then the history books will have Trump’s picture on them when the dislocation comes. His chance of winning is exceedingly small however and Hillary is all in on more credit/money.
    Europe is another story however. There the opposition to the status quo has some thought behind it and if France or Italy fall out of the EU then my no sudden change scenario is in question.

    Well who cares what I think but I urge everyone to accept the possibility of a less dramatic slog down for some years to come.


    “… globalization was never designed to share anything at all, other than perhaps wealth among elites, and low wages among everyone else.”

    The essential truth is that it was a bad faith con job from the get-go. Sour grapes neo-Bolshevism will die hard, but die it will, since continued life on Earth must thrive on love, not hate.


    So, they’ve tried almost everything. QE, Twist, Zirp.

    But wait,,,,what’s that sound,,,,there, off in the distance? Sounds like chopper rotors warming up.

    There is definitely a sea change at hand. We are headed for the only final “solution” power knows. Fiscal Stimulus. Slowly, at first, then all of a sudden. Only this time around it won’t stop until nominal GDP “growth” is well into double digits.

    The only bubble we have here is the strong dollar. That is about to change.

    Deflation,,,out. Inflation,,,in. Like it or not, it’s what’s for dinner.


    You write: “The end of growth exposes the stupidity and ignorance of all but (and even that’s a maybe) a precious few (of our) ‘leaders’. There is no other way this could have run, because an era of growth simply selects for different people to float to the top of the pond than a period of contraction does. Can we agree on that?”

    Well, we cannot agree on the notion that growth selects for different people to float to the top than contraction does.

    The end of growth as the global industrial human society is now experiencing is without precedent in human history. There will be no new leaders floating to the top. There may be some new errand boys that the owners parade around a bit – although I doubt even that much change in the “leadership” will be realized.

    We are experiencing the complete collapse of industrial human society [in slow motion so far]. We can no longer speak of the future in terms that applied to the past.

    C’est fini
    If ya ask me.



    And yet every day is just another day. We have pitched our tent on the railroad track. Everything is fine so far.

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