U.N. study savages U.S., European economic policy

[xchrom]

http://uk.reuters.com/article/2011/09/06/uk-economy-un-report-idUKTRE7852XI20110906

(Reuters) - The pursuit of austerity measures and deficit cuts is pushing the world economy towards disaster in a misguided attempt to please global financial markets, the annual report of the United Nations economic thinktank UNCTAD said on Tuesday.

The report, entitled "Post-crisis policy challenges in the world economy," savaged U.S. and European economic policies and called for wage increases, stricter regulation of financial markets, including a return to a system of managed exchange rates, and a conscious break with market-led thinking.

"The message here is very pragmatic: we need to reverse our course quickly," said UNCTAD Secretary General Supachai Panitchpakdi.

Supachai, a former head of the World Trade Organisation, said the policy response to the crisis, with an emphasis on fiscal tightening, was misconceived and inept.

[fasttense]

1. How come so many people seem to know that austerity in the midst of a shattered economy

is a recipe for disaster and yet our law makers and President don't.

Are they stupid, willfully ignorant or corrupt?

[xchrom]

2. or just plain old believers in neo-liberalism.

selling off the Commons -- and i include social programs in that broad swipe -- is the preferred solution for these characters.

revenues are there -- but this group of alumni will never pick it up.

[adhd_what_huh]

4. it's because they know the solution is exactly opposite of what they

preach and rely on for political survival. For example, if Obama-care is allowed to continue then pre-existing conditions will never be allowed after 2014 and for profit health insurance will end and republicans will never again be able to run against big government...they have nothing else.

[elleng]

3. This is hugely important, imo. Will it be ignored?

'The report put much of the blame for the crisis on deregulation of financial markets, which it said invited destabilising "herd behaviour" by speculators, and allowed an over-concentration of banking activities.

"What we've seen in the past and we never learn is that countries seem to have excessive belief in the financial markets. And we've seen time and again that financial markets are not very sound in their judgement," said Supachai.

"But still people keep thinking that they are doing these austerity measures because they want to please the markets so that the markets give them better ratings, including the rating agencies which do not always produce the best assessment."'

I've sent it to the White House.

[xchrom]

5. +1

[Jefferson23]

6. K&R. n/t

[w0nderer]

7. k&r n/t

[blkmusclmachine]

8. Everything seems to be going "according to plan."

n/t

[saras]

9. Fer chrissakes - austerity has never ever been good for anyone or anything anywhere, by its nature.