Friday, September 30, 2016

Crazy Solutions to Avert The Next Crisis Will Rise Going Forward

There's people in high places, desperate to retain power, listening to crazy ideas like this. How this stimulates aggregate demand while the cost of government, i.e. taxation, skyrockets. In addition to foolish ideas, a banking crisis in Europe will send not only the European economy but also the global economy down hard in 2017. Soon the majority will realize soon realize that their confidence in the central planners of the world to avert a crisis is misplaced.

Headline: Summers Floats Idea of Sustained Government Stock Purchases

Former U.S. Treasury Secretary Lawrence Summers floated the idea of continuous purchases of stocks as a potential ingredient in a recipe for the developed world to strengthen economies struggling with subdued growth and inflation.

Among the proposals that deserve “serious reflection” is the purchase of a “wider range of assets on a sustained and continuing basis," Summers said in a lecture at a Bank of Japan conference in Tokyo Friday. "I’m not prepared to make a policy recommendation at this point,” he told reporters later.



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