The bottom line is that monetary policy is almost entirely irrelevant now: the only solutions are fiscal, and structural.
I find this kind of liberal discourse quite amusing :) Cut taxes, or just abolish them like Ron Paul proposes.
For the moment this all looks like the failure of paper-currencies and not like a reprise of the 1929 Depression. While paper-currencies are kept unpegged to physical entities they are bound to dive in a resource constrained world.
Of course the Central Banks still have the option to close the paper flood gates and make the Economy decline faster than the resource flows to Society, but I doubt they'll take that action.
The LEAP2020 is forecasting the €uro going over 1.70 to the dollar still in 2008. That might well be the case, sending into recession important sectors of our economy. But then again, making it easier to access scarce resources that can help us undertake the social paradigm changes needed to enter the XXI century. Vencit omnia veritas.
1.70EUR, could do depends if the ECB can hold its nerve, I am thinking the pound could well be the dollar or 2008
But then again, making it easier to access scarce resources that can help us undertake the social paradigm changes needed to enter the XXI century.
Remind me what these social paradigm changes are, Luis?
The very idea that the solution to these problems is more government spending Just makes me chuckle to myself.
And your solution is, acrowe? "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
