bailout of banks and financial institutions made enourmous harm to the global economy and enlarged deep inequalities in the modern world.
instead of bailouts Western governments could put this money (trln of dollars) into IMF and WB and start lending to the poorest countries to subsidize establishment of safety nets and social and health securities in these countries and pressurize comparatively rich BRICs (who have big reserves) to do the same. This not only will reduce inequalities but also sput the global demand and growth.
there could be few conditions attached, first of all reducing corruption and incresing transparency (insisting on passage of Right to Information Acts).
however so far IMF did exactly opposite demanding reducing social spending, balancing budget, raising rates and plunging countries into more misery and poverty.
Today's rulers of US and Europe will be remembered as incompetent rulers who presided over the biggest graft in human history. Supporting zombie banks like RBS, Citigroup, Bank of America and many many others will not help to restart lending. These financial institutions lost the main thing which is necessary for any financial institute - THE TRUST. Nobody is going to trust them anymore and whether recession will end or not, they will be always zombie banks.
instead of bailouts Western governments could put this money (trln of dollars) into IMF and WB and start lending to the poorest countries to subsidize establishment of safety nets and social and health securities in these countries
How is that sustainable for poor countries in the long run? Surely Africa doesn't need more money to prop up poor government.
If poor countries get safety nets this will increase demand for goods and subsequently they can emerge as viable economies. Of course the main problem is implementation and reducing poor governance, but if you don't start to tackle this problem who will?
And then do you have any alternative? I remember you defended the whites' rule in Zimbabwe and South Africa. The whites did not do anything to lift Africa out of destitution.
I remember you defended the whites' rule in Zimbabwe and South Africa.
You're welcome to show me when I did exactly that.
But your unwillingness to illustrate your own point makes it less credible. Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith
If you don't have time for ad hominems, then please don't start them. Extraordinary claims do require extraordinary evidence.
Still, that's not really the issue. The issue is if the disastrous results could and should have been expected, or if the regime change was done in good faith. Honest mistakes are after all unavoidable. Peak oil is not an energy crisis. It is a liquid fuel crisis.
