Monday, 06/06/2016 - 18:08
Has the IMF lost your mind?
Higher government debt and capital controls will the International Monetary Fund (IMF) at a time did not seem so bad after decades, the opposite has been demanded.
Free trade and limiting the role of the state are the main pillar of a liberal (and any reasonable) economic policy. Not the state should decide what is produced and consumed, but citizens and businesses should do this ourselves. Through the power of the market The state should concentrate on its core tasks, especially guarantee the safety of all people and their property, but otherwise stay out possible from the lives of people.
There was a time when the International Monetary Fund (IMF) set for goals such as free trade and limiting the state sector a. But after the IMF has become a part of the international rescue machinery, which saves himself with great difficulty from one crisis to another, those days are gone forever.
But what was previously only seen between the lines, the move away from a liberal stance is underpinned increasingly theoretical. In a wissenschatflichen Fachbeitrag three IMF experts now criticize no less than the foundations of the free market. Relying on various empirical studies, the experts conclude that free trade and government spending cuts often do more harm than help. The reason? Free markets ensure greater inequality and inequality is automatically harmful for growth, so the new doctrine.
If all men are free and unique, of course, results from automatically inequality, because the talents and abilities of the people are, after all not the same degree and accompanied so that also means that not everyone can be equally successful. But the interesting now no longer, especially not at the IMF. Instead, simply postulates equality (and therefore state control and redistribution) is desirable and important than freedom.
Since the financial crisis, the pendulum swings again clearly towards regulation and state control. No wonder the excesses were but especially the private operators, such as the banks and rating agencies charged before the financial crisis. That governments and central banks also her fingers in the game had (for example by the policy objective in the United States, each to allow the real estate for sale as well as the loose monetary policy after the bursting of the Internet bubble) is thereby deliberately overlooked. The fact is that totally wrong incentives were set by legislation, by the loose monetary policy and by an ominous near banks and governments, which have enabled the bladder only.
Because the market was just never really "free", but central banks and governments have on the control of interest rates and by their increasingly dramatic shooting into the air government spending their economies dramatically (negatively) affected. By bank bailout, the free market was ultimately completely ausgeheblt. Hundreds of billions in losses that were caused by speculation gone wrong and are entirely to blame and the private banks were taken over by the taxpayer. Banks and governments were guilty, but taxpayers could pay the bill.
The dramatic change in direction, which the IMF now apparently initiates should help to conceal the fact that many states have grossly overindebted and now find no way to reduce the debt mountain again. Any attempt to reduce government spending, namely resulting in a significant decline in economic activity and thus to declining revenues, the debt situation only exacerbated. Since it is easier to simply continue the failed policies of the past and so to keep the illusion of growth for a few more weeks or months of life. Many states at an impasse, from which it is no longer so easy to come out. That it currently does not look after crisis has mainly one reason: The central banks keep interest rates artificially on the ground. Because at market interest rates made many States would be a long time bankrupt.
The IMF now claims not true that higher debt is good. But it is often better to just live with a high debt burden, as these break down, write the IMF experts in their new concoction. With the growth contribution, which come through the higher debt, could someday and somehow reduce the debt burden. If one believes this recipe, the dramatic increase in debt in recent years should have triggered a boom. Indeed, rising debt still lead now in the short term difficult to growth, but the maneuver States deeper into the dead end of strongly rising debt and barely growing economic power - at historically exceptionally low interest rates.
In addition to less economy, the IMF recommends more redistribution and even a control short-term capital flows. That although the free trade can harm individual industries, institutions or individuals that it is positive for economies as a whole but actually in all circumstances, David Ricardo has been able to demonstrate the 18th and 19th century at the junction. Here the modern economic theory falls obviously dramatically behind the knowledge back who was already several hundred years ago generally known.
The IMF is going to mutate from a proponent of free trade to a proponent of government regulation, state control and state-controlled economy. The bill we will all pay - in the form of less freedom and less prosperity.
http://www.godmode-trader.de/artikel/hat-der-iwf-den-verstand-verloren,4715286
). Anyway, I trust David to be a nice dev and pool operator, so I'm confident that my ORB will reach my wallet at the automatic withdrawal amount that I have set on my account page. If not, I'm sure it will work another way.
