Trump is relying on others to rescue him from destroying the American economy. He riding the tail end of the Obama Comet and says it’s the head. (ODT)
Global finance ministers and central bankers are prepared to “act promptly” to shore up growth in a world economy that faces downside risks including trade tensions, according to a statement issued on Saturday.
While growth is projected to firm up in 2020, “risks remain tilted to the downside”, according to a communique by the International Monetary and Financial Committee, the main advisory panel of the IMF’s 189 member countries.
Conditions aren’t being helped by the crude trade policies being pursued by the US, which are damaging its major trading partners with flow-on effects to the rest of the world, while hurting segments of its own economy in the process.
The Fed has now backed off on its attempt to use what had been benign conditions in the US – where the economy was growing strongly, if perhaps unsustainably, in response to the debt-funded Trump tax cuts and spending – to normalise its policies.
Twin reports by the International Monetary Fund sketch a chain reaction of dangerous consequences for world finance. The policy – if you can call it that – puts the US on an untenable debt trajectory. It smacks of Latin American caudillo populism, a Peronist contagion that threatens to destroy the moral foundations of the Great Republic.
The IMF’s Fiscal Monitor estimates that the US budget deficit will spike to 5.3 per cent of GDP this year and 5.9 per cent in 2019. This is happening at a stage of the economic cycle when swelling tax revenues should be reducing net borrowing to zero.
The deficit will still be 5 per cent in 2023. By then the ratio of public debt will have ballooned to 117 per cent (it was 61 per cent in 2007). Franklin Roosevelt defeated fascism with a total war economy at lower ratios.
Two former Goldman Sachs executives (pictured, Gary Cohn)—along with the Federal Reserve—are likely to control our economy and financial system in the years to come.
Cenk Uygur and John Iadarola | (The Young Turks Video Report) | – – “Now that Bernie Sanders knows that …
Instead of investing in dirty fuels, let’s start charging polluters for poisoning our skies — and then invest the revenue so that it benefits everyone.
Each ton of carbon that’s released into the atmosphere costs our nation between $40 and $100, and we release millions tons of it every year.
Businesses don’t pay that cost. They pass it along to the rest of us—in the form of more extreme weather and all the costs to our economy and health resulting from it.
We’ve actually invested more than $6 trillion in fossil fuels since 2007. The money has been laundered through our savings and tax doll
This has got to be reversed.
We can clean our environment and strengthen the economy if we (1) divest from carbon polluters, (2) make the polluters pay a price to pollute, and (3) then collect the money.
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