Brahmason's Blog

For the money that executives of WMF ( FMI ) and other american and european institutions are being paid , to say that USA and Europe economies are needing stimulus sounds very much as a joke . It does not justify their salaries .

If the stimulus you are once again suggesting is the same so far applied , you better leave your post to someone else .

Money injections and purchasse of sovereign debt of ailing economies is something that will only contribute to worsening of the situation making problems bigger and eternal .

Economies have to get more competitive by cutting unnecessary expenses both in public and private institutions .

You cannot give further financial help to private companies which insist in maintaining the old routines and structures that brought them where they are .

Letting some companies and banks to their own fate is not that bad in many occasions . It will teach investors and leave the market healthier for remaining competitive institutions ,

By now we all know that if executives of leading banks and companies are seen their income increased is just to keep their mouths shut . Let them talk .

We cannot keep refinancing institutions without a future and this applies to some countries too . For example if the euro is to survive . some economies will have to go through the experience of a default both in quantities and maturing date .

In the USA as in some european countries and Japan , instead of refinancing mistakes , governments should stimulate new economic policies stimulating the creation of added value and taxing
speculation moves with full determination .

The present attitude of refinancing the old ideas is causing huge cemmetteries of liquidity and one of the biggest problems that world economy has because of that , is that there are at least four times the amount of liquidity needed , so that the economy is constantly exposed to strong submerged inflation pressures .

A QE3 in the USA identical to previous ones , would increase debt and get no positive impact on durable demand ( increase of purchassing power ) .

Brahmason