Thursday, January 24, 2013

Money Cannot Buy Growth
Economist Andy Xie (AE) looks at the greatest experiment in monetary stimulus in modern history - the scope of money printing by the U.S. and China .. evidence shows it is not working .. "Staving off crisis & reviving growth still dominate today's conversation. The prima facie evidence is that the experiment has failed. The dominant voice in policy discussions is advocating more of the same. When a medicine isn't working, it could be the wrong one or the dosage isn't sufficient. The world is trying the latter. But, if the medicine is really wrong, more and more of the same will kill the patient one day." .. concludes that the experiment will fail to create growth, but will eventually succeed in creating rising consumer goods prices.
LINK HERE to the essay

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