Monday, 21 September 2009

Exits and Lies

One thing that should not worry us at all is the lack of exit strategies coordination. That the stimuli should be coordinated simultaneously on a global scale in order to enhance their effectiveness is Economics 101, widely known and understood, but the problem of an exit strategy is precisely the opposite: a simultaneous global exit raises the danger of a cumulative recessionary drive. As long as the exit is not premature and does not turn into a stampede, it is much better if every country goes its own way, staggering their respective exits. The only desirable coordination would be a coordinated staggering of exits to simulate a random process, instead of an uncoordinated early exit by precisely those countries that have been running the stronger stimuli.

The United Kingdom regime is terrified it's going to be left with its gigantic deficit, (which it pretends to have deliberately run in an anti-recession fit of good heartedness towards the rest of the world), mass unemployment, collapsed manufacturing base, devaluing currency, and recovery delayed for a generation, while other, properly and sanely run economies contain the inflationary threat from their anti-recession stimulus measures and return to financial and fiscal orthodoxy. Even grooming and redefining the IMF and its interventions as nothing shameful (Mandelson), and a readymade institution that can be funded and used to implement co-ordinated global management of the global recession (Brown) does not hide the enormity and uniqueness of the economic disaster that the Labour regime has brought upon our country.

No comments: