This Bloomberg headline says it all. Governments controlling the world’s largest economies can’t agree on much, but on one point they are united. Policies that have plunged the world into economic crisis should not only be continued; they should be intensified. More of what has caused the crisis will pull us out of it.
Human beings are not always logical, but this really takes the cake. A crisis of too much money printing, leading to ruinous bubbles, followed by crashes, will be cured by more money printing. A crisis of too much debt created in the bubbles or, more recently, in the aftermath of the bubbles will be cured by creating more debt. A crisis of too much government borrowing and spending, and even greater unfunded government liabilities, will be cured by more government borrowing and even larger unfunded liabilities. Putting government in control of more and more of the economy, which has already fueled unprecedented economic corruption, aka crony capitalism, will be cured by even more government control. Elimination of free prices everywhere, which has destroyed both economic truthfulness, and efficiency, will be cured by eliminating what few free prices remain.
The only thing that governments worldwide seem to be able to agree on is how to ruin our economic future.