J.P. Morgan economist James Glassman didn't mention the Pope by name in a recent research commentary, but as James Pethokoukis, a blogger at AEI,
writes, it sure sounds as though Glassman had the Pope in mind when he wrote:
Those concerned about global poverty have more to be thankful today than to complain about. The commonly-heard complaints that today’s economic systems fail to address the plight of the poor ignore several fundamental facts.
Poverty is not a modern phenomenon[...]
In other words, market-oriented economic systems are doing more to cure global poverty than any other effort in the past
.Of course, this is an establishment economist so he ruins his defense of free markets, with this support for central bank money printing:
the developed economies are still recovering from deep recessions and in time will reach their full potential. That is, of course, why central bank policies remain so stimulative. Those hurt by the recession will be restored as the developed economies continue to recover.
Yes the free market platform...espoused again and again...by those that don't adhere to it's principles and owe their existence on the forced charity (aka extortion) of the citizens. wow...the balls...
ReplyDeleteFed fails to learn
While there's a good book to be written on late-stage Credit cycle dynamics, I'll attempt a few pertinent insights. In general, things really run amuck late in a Credit boom - and policymakers extend the Bubble's duration at all of our peril. To be sure, finance is over-issued and misallocated. The poor allocation of Credit throughout the real economy ensures maladjustment and progressive stagnation (i.e. less economic bang for the Credit and speculation buck). And as we've witnessed, if policymakers throw only looser "money" at the problem the end result will be more speculative asset markets and runaway Bubbles. Maladjusted economic structure coupled with asset Bubbles ensure a problematic redistribution of wealth toward a small segment of society. Meanwhile, the mountain of suspect financial claims grows ever taller.
Today's conventional economic thinking ("inflationism") believes that so-called "insufficient demand" can be rectified by monetary policy. Yet the additional late-cycle "money" printing gravitates predominantly to inflating securities markets. At the corporate level, various forms of financial engineering are employed with the objective of supporting higher stock prices. On the one hand, little of the liquidity makes its way to the type of sound investment necessary to support sustainable wealth creation. On the other hand, that much of the population fails to benefit from monetary inflation becomes an important facet of late-cycle economic stagnation.
http://www.atimes.com/atimes/Global_Economy/GECON-01-021213.html
"Poverty is not a modern phenomenon[...]" It just seems like the Pope leaves out what Jesus did on the cross only to leave in history what man did in the beginning.
ReplyDelete"Poverty is not a modern phenomenon[...]"
DeleteYup. Is Francis too stupid to realize that? He thinks capitalism brought about poverty? Is he insane? Hell, the poorest of people (in the US at least) live better than the KINGS of old! This is not rocket science. This pope is either #1 a narcissistic liar, #2 trying to suck up to the masses, is completely stupid, or #3 just plain ignorant when it comes to economics.
I find it hard to believe this guy is the #3 choice since he can't possibly be so stupid as to think poverty did not exist before capitalism. Such as notion is unbelievably laughable. Last thing people need is a fool leading a billion other fools.
Soooo this means that Glassman is going to start blessing, embracing, and kissing the deformed masses.
ReplyDelete[Jesus would approve...]