Oh there are proposals for getting UE down which do not involve inflating irresponsible govt spending:

First get the budget balanced through choice expend cuts, and targeted tax hikes (mostly against the rich). Then direct govt activity solely at identified market failures.

A lean, corruption-free govt which provides an efficient legal system and covers a handful of market failures is all a small, open economy like Ireland’s needs to prosper.

In the NWO, it is likely to intensify, hence the restrictions on use of cash.

Adjustments will be made rationally, but there is still large volatility until all the created money finds a home. Some rational decisions will unwind. Speculators will have access to these funds. Weakness, fake or real, will be attacked. The aim is to make more ……

To address them socially, you elect a government that robs you blind! There is no such thing as public funds. It all belonged to someone, once. This is a management issue. If you give massive amounts of power or money to someone else and they realize that they are unaccountable, what happens?

Banking, shadow banking and plain counterfeiting via derivatives, has enabled massive amounts of “money” to be created. In doing so houses have swelled and are bursting in value. Stocks are slowly falling back to pre bubble valuations. Hot money is now flowing into FX markets. The values are being destroyed by clever operators as we speak. Sharks meeting bigger ones. Eventually, what remains of this money will go into things appropriate for a Kondratieff winter: Gold, land that is undervalued and cash. This can take a long time. The real economy will deflate as the deflation chases hot funds out of it into the investment arena. Everything else loses nominal value. Labour, energy, buildings, services, all drop. Welcome to your future! The deflation is not to be feared! It is the normal scheme of things.

Only critisism and no real proposals about how to get unemployment down and reduce inequalities, that are the real objectives of any economic policy.

Good point Ribbit too on crowding out. Public money is driving out private cash ever nore clearly, in many areas. For one, consider the implications for Ireland if SPV-led financing replaces national issuance.

Good point too, Michael Crowley, about lower short rates reflecting the dampening effect of (expected) fiscal ‘tightening’ and driving the euro lower… ​a very welcome development (for Europe).

I’m not sure about “Fiscal policy has gone into reverse in several countries”. Really? A bit like driving cars at breakneck speed, and thinking about pulling back on the throttle for fear of falling into the ditch. Coming to a stop, let alone “into reverse”, seems a long way off still. A nice image, but no recognition of the deleterious long term impact of still ultra expansionary policies today, cooperative or otherwise.

Eventually…indeed!

The FT’s Lex commented last month that when financier George Soros called gold “the ultimate bubble” earlier this year, many observers falsely interpreted it as a cue that the great speculator was eschewing the barbarous relic.

Instead, he bought exposure and has made a tidy profit so far. Lex said the difference between Soros and the decidedly less-smart money that has helped push gold to a record high is that he has the proper historical perspective. Gold has only enriched those who have known when to sell it to a greater fool.

And it will in due course Mr. Hennigan, and it will.

Surely this depends on the extent of the crowding out.

If fiscal expansion-led growth comes at the price of debt crises which curb growth at a greater pace than the fiscal stimulus, then everyone loses.

Speaking of which: At what point to the Keynesian advocates of irresponsible public borrowing start admitting all this soveriegn debt they screamed for might have been a bad idea?

First, while the euro has weakened a great deal versus the dollar, the greenback has strengthened only modestly on a broad, trade-weighted index basis (the TWI). The Fed’s broad index has risen by about 4% since mid-April and by 6% since December 1st.

Second, growth is far more important than currency movements in driving trade, prices and profits, and MS see only modest risks to global growth. Finally, much of the dollar’s recent strength reflects a flight-to-quality bid symptomatic of - - and idiosyncratic to - - the European sovereign debt crisis.

While the MS FX team expects the euro to decline to 1.16 against the dollar this year, it expects the dollar to weaken again versus AXJ (Asia ex Japan) and other currencies, leaving the broad dollar TWI little changed for the balance of the year and into 2011.

http://www.finfacts.ie/irishfinancenews/article_1019826.shtml

“And the US needs to be thinking about how to insulate itself from European masochism.

The pendulum will swing again; the EUR/USD rate went from about 1.18 in Dec 2005 to 1.60 in July 2008.

The currencies are the two top reserve currencies; what should one expect?

@ Cormac Lucey

The current gold price would need to almost double to hit the inflation-adjusted record set in Jan 1980.

Everyone cannot simultaneously devalue their currencies against everyone else. But all paper currencies could end up devalued against the hard currency of gold. Markets appear to be anticipating that anyway.