Thursday, April 2, 2009

Global Inflation and Global Financial Regulation Just Ahead

From the G-20 meetings in London, Treasury Secretary Geithner told CBS Evening News anchor Katie Couric:
You're gonna see the strongest consensus on coordinated global stimulus you've seen in generations.A very powerful consensus on the kind of 21st century rules of the road for our financial systems...We're gonna have setbacks ahead.And that's why it's so important that we're moving together with the world to try to make sure we bring recovery back. And the world is with the president on this.
There is one thing to understand here, when you have macro plans and macro institutions you have macro errors. When individual economic units are independent and free to go their own way, you don't have macro disasters, since you don't have the entire world working off the same blueprint. Now we are expected to have one plan, designed by Tim Geithner!

Note: Recessions and depressions are not about free markets, they are about a macro banking system, controlled by a central bank that manipulates the money supply.

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