The Market Has Spoken: Austerity Is Bad for Business

[Mira]

The Market Has Spoken: Austerity Is Bad for Business

By Ellen Brown

It used to be that when the Fed Chairman spoke, the market listened; but the Chairman has lost his mystique.   Now when the market speaks, politicians listen.   Hopefully they heard what the market just said: government cutbacks are bad for business.   The government needs to spend more, not less.   Fortunately, there are viable ways to do this while still balancing the budget.

On Thursday, August 4, the Dow Jones Industrial Average fell 512 points, the biggest stock market drop since the collapse of September 2008. Why? Weren't the markets supposed to rebound after the debt ceiling agreement was reached on Monday, avoiding U.S. default and a downgrade of U.S. debt? So we were told, but the market apparently understands what politicians don't: the debt deal is a death deal for the economy. Reducing government spending by $2.2 trillion over a decade, as Congress just agreed to do, will kill any hopes of economic recovery.  
We're looking at a double-dip recession.   

finish reading:

http://www.opednews.com/articles/The-Market-Has-Spoken-Aus-by-Ellen-Brown-110807-617.html

[OllieLotte]

1. What austerity?

[Alexr]

2. This is the wrong way

The role of politicians is NOT to OBEY to markets but to LISTEN to their country.