Approved ~ MJM
At Russia’s annual Gaidar economic forum on Friday the head of the International Monetary Fund urged governments all over the world to spend more money to help revive their economies. And I’ve got some questions about that strategy.
Here’s exactly what IMF Managing Director Kristalia Georgieva said,
“In terms of policies for right now, very unusual for the IMF, starting in March I would go out and I would say: ‘please spend’. Spend as much as you can and then spend a little bit more.
“I continue to advocate for monetary policy accommodation and fiscal policies that protect the economy from collapse at a time when we are on purpose restricting both production and consumption.”
I actually have a ton of questions.
But mainly this one: How precisely does more government spending revive economies?
That’s not how money works at all. Governments can only spend what they tax from the people that actually produce, or print more money. You might get a temporary lift in the economy from government spending, but it always comes back to bite the producers later, either at tax time or through the devaluing of currency via inflation.
But they know that. They’re the International Monetary Fund. Something’s up here. Reviving economies is clearly not the real aim of this push. Cuz “Spend! Spend! Spend!” is the playbook for economic collapse.
So, what exactly does IMF want governments to spend and spend and spend on?
Why, climate change initiatives of course!
“IMF staff calculated that a coordinated G20 fiscal stimulus in green infrastructure, if it is done in a coordinated manner, would deliver two-thirds more in growth … than if each country acts on its own.”
Can someone explain to me how green infrastructure relates to reviving worldwide economies damaged by draconian Covid-19 responses?
Continued…
