Sunday, September 2, 2012

5 more enemies of the people

A few economists argue in Swedish papers today that the central bank of Sweden need to lower interest rates from already ridiculously and super dangerously 1,5% down to asylum levels of 1%.

I hope you are all taking notes. Anyone and everyone arguing that interest rates should be kept down to artificially prop up a failing economy is your enemy.

This is of course a global problem and one of the main reasons of The Greatest Depression; cornflake economists and their masters arguing and getting away with crap like this.

One could make the argument that lowering interest rates can give a small boost to GDP numbers and so make it cheaper for government to borrow and that it can send a positive signal out to the market. However for that to theoretically work we cannot live in a debt-soaked economy already bursting with bubbles and bottle-necks - and lowering interest rates further increases inflationary problems, it distorts the economy as a whole and encourage further spending with money that we don´t have.

The so called economists in question also have a few other sheepish arguments.

They point that numbers from the U.S. is looking up – which is not true in any way or form. I have no idea where they get that from, but it’s wrong on so many levels that even they should know it. Therefore that failed argument is a deliberate lie.

They also claim that lowering interest rates is a good idea since it will lower the value of the Swedish currency and help exports. This is a very common misconception and if you want to know who understands economy and who doesn’t, this is one way of measuring that knowledge. A stronger currency is seldom a problem for export, but even if it is, it’s a really good thing for imports and it makes the consumer, and thus the country, stronger. A strong and unwavering currency is also great for paying of public debt, it gives a stronger voice internationally, it attracts investments and it works as a stabilizer for the economy as a whole.

In other words, as per usual, the decision needed to be made is the complete opposite of that argued. Interest rates, if handled by a central troika of misfits, should increase, and as the situation looks today; increased by a lot.

We need a stronger currency, we need to curve the bottle-necks and we need to stop excessive borrowing. The Swedish Central Bank should increase interest rates to 7-8% in one go and shock the entire country into living within its means, and at the same time they should do everything in their power to withdraw all that excess money they printed and handed over to the banks a few years back, and while doing so do everything they can to strengthen the currency reserves, preferably with gold.

If the Swedish government at the same time sold off 20-30 government controlled entities while lowered taxes and spending with 10%, well then we´re getting somewhere.

Of course those 5 idiots referred to here, and others with cornflake educations, will argue against this and say that if we do as I suggest we´ll end up in a recession measured in GDP. To you I say; Yes, I know, that’s part of the point.

If we need preposterously low interest rates, if we need this much borrowing, this much excessive money in the system, if we need those things to be able to keep GDP on plus, we´re actually, and factually, already in a recession.

To adjust our economy and prepare for the looming and exponentially, day by day, increasing danger of The Greatest Depression; we need to do the opposite of what mushroom munching economists say.

Either people like these 5 high ranking red turds are larcenous criminals or they simply haven´t realized what trouble the world (and Sweden) is in. Either way, they are wrong and I am right - which history as far has proven and the future will prove even further.

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