Sunday, May 8, 2011

America: Listen to the IMF (this time)

This is one of the few times I've actually agreed with an International Monetary Fund (IMF) policy. As an example: While I agree that mankind does contribute "somewhat" to global warming, I believe the axis of the earth's rotation and it natural 25,000-year cycles around the sun (God) contributes much more to global warming than just the past 100 years of human's industrialization and use of fossil fuels. 

Sometimes we humans give ourselves much more credit than we deserve. In reality, when opposing nature, humans lose every time. We can slow down global warming, but we can't eliminate it any more than we can control the weather or the rotation of the earth. That's God's job.

Not too long ago (in earth time) out planet wasn't even environmentally inhabitable for humans - and that was all throughout most of earth's entire history of 4.5 billion years. But I do agree we should be investing in clean energy while the planet is now inhabitable for us, and because we humans are here and should preserve the air and water for as long as possible for our survival.

But I agree with the IMF on their newest outlook regarding the global economy.

From this article at Slate: "The International Monetary Fund now admits that total deregulation of financial markets was a mistake. The U.S. should take heed. The fund had once attempted to amend its charter in order to gain more leeway to push countries toward capital-market liberalization, but back then the timing could not have been worse.

Financial deregulation in the United States was a prime cause of the global crisis that erupted in 2008, and financial and capital-market liberalization elsewhere helped spread that "made in the USA" trauma around the world.

Money goes to where markets think returns are highest. With emerging markets booming, and America and Europe in the doldrums, it was clear that much of the new liquidity being created would find its way to emerging markets.

As unequal as America was before the Great Recession, the crisis—and the way it has been managed—has led to even greater income inequality, making a recovery all the more difficult.

IMF leader Dominique Strauss-Kahn concluded in his speech to the Brookings Institution shortly before the fund's recent meeting: "Ultimately, employment and equity are building blocks of economic stability and prosperity, of political stability and peace. This goes to the heart of the IMF's mandate. It must be placed at the heart of the policy agenda."

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