Irish Liberty Forum

A Sad Day

with 4 comments

Here is the 9 page document released by the G20 today, outlining its plans for “solving” the global economic crisis.

The agreements we have reached today, to treble resources available to the IMF to $750 billion, to support a new SDR allocation of $250 billion, to support at least $100 billion of additional lending by the MDBs, to ensure $250 billion of support for trade finance, and to use the additional resources from agreed IMF gold sales for concessional finance for the poorest countries, constitute an additional $1.1 trillion programme of support to restore credit, growth and jobs in the world economy.

We are undertaking an unprecedented and concerted fiscal expansion, which will save or create millions of jobs which would otherwise have been destroyed, and that will, by the end of next year, amount to $5 trillion, raise output by 4 per cent, and accelerate the transition to a green economy.

Our central banks have also taken exceptional action. Interest rates have been cut aggressively in most countries, and our central banks have pledged to maintain expansionary policies for as long as needed and to use the full range of monetary policy instruments, including unconventional instruments, consistent with price stability.

 

We’re doomed.

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Written by 20000miles

April 2, 2009 at 10:17 pm

Posted in economics, money, news, World

4 Responses

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  1. Relax – it’s only a press release. The good thing about these kind of G6/G20/G100 gigs is that it’s mostly spin and headline grabbing. Think about their announcements on third world aid over the years, for example.

    And isn’t there always a silver lining? Or in this case, a gold one: “IMF gold sales” – that’s fantastic. Hopefully the price will fall and we can pile in and buy at a bargain rate ahead of the great hyper-inflation …?

    Gerard O'Neill

    April 3, 2009 at 7:12 am

  2. And isn’t there always a silver lining? Or in this case, a gold one: “IMF gold sales” – that’s fantastic. Hopefully the price will fall and we can pile in and buy at a bargain rate ahead of the great hyper-inflation …?

    You make a great point. Hopefully they’ll pull a Gordon Brown and announce in advance the day they will be selling it all off.

    And you run a great blog, btw.

    20000miles

    April 3, 2009 at 7:27 am

  3. The only thing that is actually saving us from worldwide inflation (sofar) is amazingly enough the crappy banks that got us into the mess.

    You see – there are no creditworthy customers left right now, which means that the money doesn’t reach the markets yet. It will however – my biggest fear right now is the first signs of the “false boom” that have started leaking through. The US may see a rise in several indicators, however this is a “printing-press” effect – which could spell disaster.

    The politicians are likely to cheer until they see the inflationary figures. If we get worldwide protectionism after this, or simply a slow, drawn out 70’s recession for the entire western world – it remains to be seen.

    But the G20 announcement sure was enough to make me feel like vomiting. And how on earth can they be so blind not to see that the 4% increase in output is going to be something like a 10% nominal increase, overshadowing a 6% real decrease!?!?!

    //hpx Save capitalism

    hpx83

    April 3, 2009 at 9:52 pm

  4. We will know when the banks begin to lend by watching this: http://research.stlouisfed.org/fred2/fredgraph?chart_type=line&s%5B1%5D%5Bid%5D=MULT&s%5B1%5D%5Brange%5D=5yrs

    “We’re doomed” …I feel the opposite. This “crises” is really a correction. It gives Misesians an oppurtunity to spread the word about the dangers of debt and fractional reserve banking scams. It gives us Theonomy Christians opportunities also.

    Chalcedonite

    April 9, 2009 at 11:35 am


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