As noted in G-20 talks up more deficit spending; Deutsche Bank recommends gold, there were loud cries at the Shanghai G-20 Summit for “a worldwide coordinated effort” to head off global recession. Here are a few more details about the G-20 discussions.
At the Group of 20 largest economies summit just concluded in Shanghai, the primary concern was deteriorating global growth and how to counter it. Much discussed was a “coordinated effort,” which would include increase government spending by members, in addition to the massive deficit spending already going on worldwide. Mark Carney, Bank of England head,
Martin Wolf, chief economics commentator at the Financial Times, is calling for the world’s central banks to start electronically depositing money “to every adult citizen.” Wolf’s not calling on only the Fed to implement this policy but all the world’s central banks, which would mean massive inflation around the world that would send investors scurrying
A former head of the UK’s Standard Charter bank proposes that the war on cash be ratcheted up. ln a paper published Sunday, Peter Sands demonized large banknotes, saying they are “king among terrorists, drug lords and tax cheats.” According to him, Illicit money flows are estimated to run up to $2 trillion a year.
Mario Draghi, ECB chief, again reaffirmed his pledge to print more euros next month in a Keynesian effort to fillip economic activity in the eurozone. In December, the ECB’s measures fell short of market expectations, and stock markets declined. This time Draghi does not plan to disappoint.
At the Houston Mises Circle January 30, I sat on a panel and was asked how I saw the gold and silver markets doing in 2016. Basically, I said that metals prices hinged on what the Fed does with interest rates and with how the stock market reacts.
The main reason to buy gold and silver is to protect against currency debasement, which is brought on by massive deficit spending that requires the Fed to print dollars to cover debt that could not be sold to private investors.
It’s astounding to hear talking heads blame the stock market collapse on falling oil prices. Lower oil prices should have caused stocks (except oil stocks, of course) to rise. This is especially true of the stocks that make up the Dow Transportation Index.
Charles Payne, host of Fox Business News “Making Money with Charles Payne,” may have put his job in jeopardy Friday when he called into question the need for the Fed, the US’s central bank. Make no mistake, central bankers and the people who benefit from central banking are powerful, with tremendous influence in the media.
To Keynesians, easy solutions reside for monetary and economic problems. When the economy is in recession, deficit spend. When inflation heats up (meaning rising prices, which the developed world hasn’t seen for some time), choke back the money supply. Problems solved. Recessions are averted; inflation is held in check. So, if “managing” the economy is