Thursday, October 18, 2012

Joseph Stiglitz: Global Promoter of Inflation

The bankster apologist and former chief economist for the World Bank, Joseph Stiglitz is advising India to print money.

"In a trade-off between growth and moderate inflation, I would plump for growth," Stiglitz tells the Economic Times of India. The "growth," of course, is the growth of government spending with borrowed money and debt bought by the Reserve Bank of India.

And ETI got the message:
 That, clearly is a cue for the Reserve Bank of India...Public investment will have a much larger multiplier effect and increases the nation's assets while increasing public debt...Clearly, between excise cuts on products and stepped up public investment on, say, the much-delayed Delhi-Mumbai Industrial Corridor, both financed by borrowings from the public, investing in infrastructure building is preferable by far.
As per usual, Stiglitz does not discuss the distortions brought about be money flow being redirected to the non-productive government sector and the squeezing out of private sector activities. For Stiglitz, a dollar spent on bureaucratic waste is better than a dollar in the hands of an entrepreneur. And damn the price inflation that is also created.

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