Reuters reports:
Germany may come under pressure from the Group of 20 major economies to step up spending as the bloc looks to encourage stronger economies to return to stimulus mode in support of global growth, a G20 official in Asia told Reuters on Tuesday.I have no idea what this G20 official has in mind. Does he think Canada going on a Keynesian spending binge will somehow help out the EZ? Does he want Canada to pump money directly to the PIIGS?
The official, speaking on condition of anonymity because he was not authorized to speak publicly on G20 discussions, stressed Germany's responsibility as the economic engine of the troubled euro zone, but he also cited Canada as another nation with the "fiscal capability" to step up spending.
"Countries with sound fiscal positions will be encouraged to boost spending at the G20 level," the official said.
"As of now, Germany and Canada could be seen as those having fiscal capabilities among the advanced economies."
It's madness either way.
Sounds like standard Keynesianism to me. It's the "duty" of the frugal and the thrifty to spend their money to bail-out the excesses of the profligate. Canada needs to end this "vile practice" of hoarding money. Actually, that was Herbert Hoover's phrase, not Keynes. But modern politicians don't want to be reminded that they're following in Hoover's footsteps. Yet it is quite clear that the reason Canada is even in this position at all is because they gave up their Keynesian profligacy over a decade ago and embarked on a program of austerity. Otherwise, they right there in line with Greece.
ReplyDeleteIs it purely coincidental that this story was published only a day or three after Mark Carney, Governor of the Bank of Canada, attended the Bilderberg conference?
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Stupid Canadian leaders are almost as stupid as stupid American leaders. I know -- let's print a TON of money and give it away! Don't worry that it isn't worth anything, everyone will LOVE us!
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