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Faltering Friday – Eurozone GDP 0.3% From Recession

Will the G20 "fix" this? 

Now we're getting terrible GDP reports from all 19 Eurozone nations, coming in at an overall 0.3% in Q3, down from a not exciting 0.4% in Q2 and please keep in mind this is DESPITE TRILLIONS of DOLLARS in stimulus.  Draghi has already said he plans to do more of the same and we can expect all of the G20 nations to pledge to do SOMETHING to prevent a Global Recession – but can they?  Should they?  

What we need the G20 to do is to put shovels in the ground and fund some infrastructure projects that put real money into the economy and, more importantly, begin to burn of the massive surplus of raw materials that China's slowdown has left us with.  Pumping another $58.6Tn into the Top 1% (see Tuesday's post) isn't going to "fix" anything but the balance sheets of people rich enough to have balance sheets.

If you can't get Capitalists to pay their laborers more then the Government (the one that is supposed to be "of the people, by the people and FOR the people") then it is the JOB of the Government to compete with those Capitalists for cheap labor and cheap materials.  The Capitalists are not making efficient use of our workforce or our materials – that is an OPPORTUNITY for the Government to get a few home improvement projects done while they can be done cheaply.  

The same logic should apply to any industry that is being mismanaged.  If private enterprise is unable to efficiently deliver low-cost health care to all of the citizens, then why can't our Government compete to offer a service at a lower cost?  That's not socialism – that's real Capitalism. 

The thing we are doing now is nothing like Capitalism, it is Corporate Welfare on a massive scale and the worst thing about it is that, ultimately, the burden of all these debts we're incurring falls back on the same people we are making no effort to help – it makes no sense – unless you are the one getting the Corporate Welfare, of course








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