Fund manager: Economic reforms, not just stimulus, needed to get Japan, China back on track

  • Article by: MARK JEWELL , Associated Press
  • Updated: May 9, 2013 - 4:24 PM

BOSTON - Investors are worried about the slow pace of U.S. economic growth, but we're just one player in the international arena. To assess the global outlook, two numbers are critical: China's gross domestic product and Japan's inflation rate.

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mauianMay. 10, 13 2:50 PM

Typical western economist. "Buy more stuff" is the answer to all our problems globally if you ask them. Everyone spend more and magically all will be ok. Too much debt? Buy another car. Take a month off and go to Disneyland. Spend spend spend. You don't need to be a Mensa student to realize there is a finite amount of growth to be had, a finite amount of money to spend, a finite amount of population growth. Therefore you have a finite ability to "Buy more stuff" and eventually you can no longer "buy more stuff" because all this money printing has negative consequences. So most all of the finite resources are now going to the finance sector, who created the problem. And this will only get worse over time. That's sort of where we are today. Central bank money printing only aids the wealthy, and hurts the poor and middle class because you lose purchasing power of your currency through inflation. QE in the US and UK is going directly to the banks, where they are once again offering home loans to folks who should not have loans, like those with no jobs or income. Sound familiar? We need to stop beating this dead horse economic idea of "just buy more stuff". Corporations are sitting on all time high profits, near all time low tax rates and paying reduced wages, but it hasn't fixed the economy has it? Mr. Economist, you cannot "Buy more stuff" without a liveable wage job. Did they not teach you that part of the equation?

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