You noticed.
The neoliberal paradigm is imploding. Hutton may be out of paradigm with MMT but he is correct about order breaking down, confidence declining, and risk off in the rush to safe havens. His solution is application of snake oil, though.
The world needs inventive responses. It needs a bigger, reinvigorated IMF whose constitution should reflect the global balance of economic power and that can rescue the EMEs. It needs proper surveillance of global finance. It needs western governments to launch massive economic stimuli, centred on infrastructure spending. It needs new smart monetary policies that allow negative interest rates.Ok, granted, he is right about fiscal for infrastructure.
Bill Gross asks who will buy the Treasuries the Fed accumulated on its balance sheet during QE. Well, there's a clamor for them now as yield plunge along the curve, with T-bills matching ZIRP.
The world economic order is collapsing and this time there seems no way out
Will Huttton
5 comments:
Will Hutton is a paid up member of the World Government big hug club.
Bit of a dinosaur imv.
I agree with Neil. Hutton is little more than a rich source of hot air.
Gross' latest is that the Fed has to raise pronto.... all of these institutions that rely on the interest paid by govt are dying as we watch these rates collapse down to zero...
The "way out" for them is to raise rates... they will soon do this via simple self-interest/survival instinct taking over ... the hypocrisy will go right over their heads they are stupid....
Don't disagree with the main point but "the left should embrace negative rates" really!? Chasing the natural rate myth.
The IMF "being concerned about $3 trillion" in debt is silly in a world with $90+ trillion gdp and 10s of trillion in foreign exchange reserves.
"The neoliberal paradigm is imploding"
Implosion implies destruction, something collapsing and failing. We're getting a more practical form of capitalism, a convergence between socialist and capitalist that doesn't have the strict dogmatic approach of twentieth century market-fundamentalism. This should be viewed with optimism and expectation of a brighter, more balanced economy that tilts back toward the little guy in The East and West.
Instead we get these antics.
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