Aug 31, 2012

The Jackson Hole vibe: stimulus or bust

As central bankers meet at Jackson Hole this weekend it's clear the only option left to prevent further global slowdown is to hit the stimulus button again, writes Stephen Koukoulas of Business Spectator.

As many of the world’s central bankers and some of the great economists gather in Jackson Hole to compare notes about the state of their own and the global economy, it is enlightening to consider the backdrop to the meeting.

Countries that account for about 60% of global GDP — that is, the US, UK, Canada, the eurozone and Japan — have had their policy interest rates at 1% or less for close to four years. In the case of Japan, it is nearly two decades of zero interest rates.

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6 thoughts on “The Jackson Hole vibe: stimulus or bust

  1. John Bennetts

    Here we read again of a supposed slowdown in China, but is it a slowdown?

    I have heard repeatedly that it is a slowdown of the rate of growth.

    In other words, China is not slowing down at all; it is speeding up. What has changed is that the rate at which it is accelerating has decreased.

    Of course, if a writer really does have evidence that China’s economy is slowing down, how about making that the subject of a real story? Plus a link, of course, to source of the data.

  2. j.oneill

    The crisis the world is facing is not one to be resolved by debates about quantitative easing, or stimulus packages or any other esoteric variations. The latest crisis began in earnest four years ago, although the genesis goes back at least to the Reagan years.. Three decades of deregulation, de-supervision by the regulatory authorities and de facto decriminalisation of criminal conduct by the financial industry has had the inevitable consequence of rampant criminality for which the taxpayers are expected to pick up the tab.
    Despite massive criminality there has not been a single prosecution of the people who brought us the current crisis. As William Black among others have pointed out, if there are no consequences for such conduct then one cannot be surprised that it occurs and will reoccur.
    As recent developments in Iceland, Spain and Greece have shown, the people are beiginning to fight back. That is the real story behind the Jackson Hole meeting, although on their track record thus far the participants are unlikely to address it. Rather they will no doubt be working on ways to carry on with their predatory conduct, enriching themselves in the process, secure in the knowledge that for them personally there will be no adverse consequences.

  3. CML

    @ J.ONEILL – Whilst I do not understand much about the global financial mess Europe is in, what you say makes a lot of sense. It also begs the question, why haven’t the people in Greece, and maybe other countries, risen up against their leaders? Where is the revolution????

  4. Liamj

    Let the banksters continue to loot/print money, their cowardice and greed is ensuring the extinction of the growthist suicide cult. I hope some survive, for the show trials.

  5. GLJ

    Those that are not in power [in government] always claim that they have a solution to GFC or they simply deny it exists as in the case of Abbott & cohorts. When in government the battle to keep the ship afloat becomes real & the windbaggery of opposition begins to look clearly like the cheap shots that they were.

    There is no easy exit from the world forces. Neither Austerity nor stimulus can right the ship “SS Sanity” in a storm like this one within a few months or even years of new improved politics.

    This is a tough time and the cheap shots of those clawing for power in the opposition are as empty as Spanish gigolo’s pockets.

    Democracy is being surely tested in these interesting times.

  6. Owen Gary


    Thats pretty much a hole in 1.


    The market system hegemony controlled by the banksters is slowly being digested by some of the worlds population, thats why the revolutionary reaction is slow. Although there are some positive signs in Greece & Spain.
    We are being routed by the same regimes here in Australia yet as George Carlin said “nobody seems to notice, nobody seems to care”

    Many believe as do I that the system is being brought to collapse to usher in a more tyranical era of governance by the much touted NWO, but this can go 2 ways but that depends on those who react & I guess that timing is also critical to the end scenario.

    One things for sure the capitalist market system controlled by those who would be king has gone way past it’s use by date and is unsustainable especially when the “corpse” are running riot. For the system to suddenly crash would bring on a global food panic, that is why a transition from the current hegemon to community based co-ops would be a far more desired model. We would once again be eating food produced in localities rather than this tightly controlled WTO monopoly of poisoned produce, which only serves to keep the big Pharmaceuticals in business.

    We are entering what is tagged the age of enlightenment, but that remains to be seen as the Coal Seam Gas industry is destroying the aquifers & waterways that irrigate those crops needed to sustain us all, this is happening worlwide. Is this an attempt to cause death disease & famine by means of lack of availability of unpolluted tracts of arable land & water supply or is this merely another coincidence????

    Certainly here in Australia the CSG & mining industry seems to be targetting all the food bowl & arable land locations, & whether they get them all or not, most underground Aquifers are interconnected.

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