In response to:

Is IMF Short for I Must Fail?

FreeThinkerGuy Wrote: Oct 13, 2012 1:46 PM
This whole "austerity" gig is misleading. Will someone point to an actual country that has reduced real spending (i.e. they were spending $X billions last year and are now spending $X - Y billions this year). Taxing more isn't "austerity" it's stupidity. Biden inadvertently let it slip that he understands this fact when he commented that removing American troops forces the Iraqis and Afghans to step up. Well, Helloooo! He made that statement because he wasn't protecting or hoping to get votes from a constituency. "Removing" taxes allows people to "step up" and become more self reliant thereby reducing the perceived need for govt action/intervention. Remember, a govt dollar spent is a private dollar taxed.

Courtesy of Steen Jokobsen, chief economist at Saxo Bank in Denmark, here is an interesting article via email. Steen writes ...

Is IMF short for I must fail?

Fiscal Multipliers are wrong, IMF admits - the biggest macro story this year

The big story this week is the International Monetary Fund's (IMF) admission that the fiscal multiplier is not 0.5 percent but really 0.9-1.7 percent according to Financial Times article
It’s (austerity) Multiplier Failure

This is actually not just...

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