There is no easy way out of this tangle. But Mr White said it would be a good start for governments to stop depending on central banks to do their dirty work. They should return to fiscal primacy - call it Keynesian, if you wish - and launch an investment blitz on infrastructure that pays for itself through higher growth.
"It was always dangerous to rely on central banks to sort out a solvency problem when all they can do is tackle liquidity problems. It is a recipe for disorder, and now we are hitting the limit," he said.…
Second leg down?
What happens when China is forced to drop its peg, like Russia?
The Telegraph
World faces wave of epic debt defaults, fears central bank veteran
Ambrose Evans-Pritchard
No comments:
Post a Comment