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    EU, ΙMF and Greece and Spending cut


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    EU, ΙMF and Greece and Spending cut - Page 7 Empty Re: EU, ΙMF and Greece and Spending cut

    Post  kvs on Mon Feb 13, 2017 3:15 pm

    The policy of austerity is a failure everywhere it is applied. It is based on the delusion of monetarists who believe that money creates
    the economy and not humans and their demands. So when the GDP is crashing these monetarist zealots decide to reduce the spending
    power of the population as if demand has nothing to do with the GDP. But predictably, the GDP begins to crash even faster and
    the reduction in spending power amplifies. The only rational policy to address recessions is big spending to counteract the decline
    in spending by the general population (which is losing jobs, etc.). Greece is in a recession and not in a boom, the policy being foisted
    on it by the unelected and unrepresentative bureaucrats in Brussels is criminal.

    One of the signs that we live in the Mammon worshiping era is that debt is treated in a sacrosanct fashion. So even if the Greek
    economy implodes, it must at all costs service its debts. This is total BS. At the stage of economic collapse all debts should
    be automatically suspended. They should be re-serviced with zero penalties whenever the economy can handle them. Note that
    I am not talking about defaulting but suspension. The loan givers are not starving pensioners but fat, bloated banksters who can
    wait several years on any of their loans without feeling it.

    Over at zerohedge and other "libertarian" sites they keep on bashing Keynes as statist big spender. This is a total lie. Keynes
    saw the right formula for taxation and growth. When the economy is booming the government must build up reserves so that
    when the economy goes into recession or even depression (due to exogenous shocks such as during the 1930s) it can spend,
    spend, spend but not tax, tax, tax. This formula is brain-dead obvious since the government is just a big consumer in the economy
    and its spending stimulates GDP. But no f*cking OECD government actually follows it. They cut taxes when the economy is booming
    and then either implement a low-spending policy when the economy is contracting or pile on debt like there is no tomorrow. The latter
    approach is not so bad if they paid down the debt during boom times but their tax cutting prevents such intelligent decisions.

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