The Pulbic Trough

It is a general stampede all right, one of complete disinformation to drive you further into the anxious arms of these international bureaucrats. They need you to need them.

Here's your tip off.

If policymakers fail to mitigate the negative impacts of unchecked global market forces, then a turn to protectionism could trigger a vicious downward spiral for everyone.

These market forces weren't unchecked. They were manipulated by the powers that be for agenda-driven means, one of which is now known after a convenient name change, climate change. Beware  of anything that has UN in front of it. this is just another call for massive government spending. Massive government spending is just like massive government money prit doesn't create meaningful and lasting growth.

The third leg of the world's intractable depression is yet to come. If trade economists at the United Nations are right, the next traumatic episode may entail the greatest debt jubilee in history. It may also prove to be the definitive crisis of globalized capitalism, the demise of the liberal free-market orthodoxies promoted for almost forty years by the Bretton Woods institutions, the OECD, and the Davos fraternity.

"Alarm bells have been ringing over the explosion of corporate debt levels in emerging economies, which now exceed $25 trillion. Damaging deflationary spirals cannot be ruled out," said the annual report of the UN Conference on Trade and Development (UNCTAD).

 We know already that the poisonous side-effect of zero rates and quantitative easing in the US, Europe, and Japan was to flood developing nations with cheap credit, upsetting their internal chemistry and drawing them into a snare. What is less understood is just how destructive this has been.

The UN's diagnosis is that "shareholder primacy" and the entire edifice of liberal market finance are among the key culprits, all made worse by stringent fiscal austerity that has starved the global economy of sufficient demand.

Notice the usual suspect here, stringent fiscal austerity.

It is not to everybody's taste. UNCTAD's manifesto of Left-wing proposals clashes with almost every nostrum taught in universities and business schools for the last two generations. Yet its arguments cannot be dismissed lightly, and its dissenting voice deserves to be heard.

The fallacy of the above paragraph is that nothing works to everyone's taste.That hardly means what's required is a "radical prescription" of more mindless government spending.

The report puts the advocates of globalisation (as practiced) in a quandary. They - or we, perhaps I should say -  typically argue that it has vastly raised the living standards of hundreds of millions of people across Asia.

Its prescription is radical. The world must jettison neo-liberal ideology, and launch a "global new deal" with a blitz of investment on strategic sectors. It wants a return of the "developmental state", commanding a potent industrial policy, and backed by severe controls on capital flows.

Here's their remedy, more Keynesian BS. It's just another form of can kicking. Give it a new moniker and it's once again full steam ahead to nowhere.

A much simpler solution is to dismantle these huge bureaucratic morasses that gorge themselves year after year at the public trough. A good place to start would be central banks. And so we will leave you with this quote.  Jim Rogers: ‘Central Banks Are Losing Their Power…Thank Goodness’

telegraph.co.uk/business/2016/09/21/un-fears-third-leg-of-the-global-financial-crisis-with-epic-debt