Old Methods Will Not Solve New Economic Problems

Dr. Michael LaitmanOpinion (O. Poddymnikov, director of Investment Management, Lanta-Bank, from finam.ru): The Americans are persistently trying to solve new problems by using old methods: increasing infrastructure spending and open market operations. The former helped Roosevelt take the U.S. out of the Great Depression. The latter …would have let the country avoid it altogether. But will these methods help this time?

Globalization has led to cardinal changes in the economic structure of the the U.S. Since the beginning of 2008 too many individuals and corporations have lost too much money. There are negative expectations concerning short- and mid-term perspective and absence of faith that the government can deal with this. Because of this, the money that is made is either used towards compensation for losses, or as savings. The rate of maximum tendency towards savings is rising, and it is inversely proportional to the government spending multiplier, which is what the U.S. government is hoping for. Consequentially, the return from investment into the economy is low.”

My Comment: The only thing that can help the U.S. is to stop violating anyone in the world, stop trying to shift their problems onto others, threatening others, putting pressure on the EU, and disturbing the Middle East. The change in their attitude towards Israel opens up problems which they won’t be able to overcome. The U.S. has to look two steps ahead. It shouldn’t go against nature, but rather study the tendency of its development and follow it. Humankind has reached the homestretch to the purpose of creation.

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