Today Stiglitz, winner of the Nobel Prize for Economics in 2001, said austerity as a policy to end the global crisis was a "disaster", adding that Europe was heading towards more economic difficulties if politicians meant what they say when they promised to cut back spending rather than just trying to calm down markets.
"If that (austerity) happens I think it is likely that the economic downturn will last far longer and human suffering will be all the greater," he said.
Really...cutting back on government expenditures and public debt financing crowding out of private capital, would be a "disaster." So we have Keynesian stimulus to thank for this economic NIrvana we enjoy. Keep doing the same thing.
I understand where Keynesinas are coming from...they are just wrong about where we should be going.MOnetary and fiscal policy got us here, leave the markets alone and the physician will heal itself.
Again I say short fiat currencies and long hard assets, DAG, MOO for me.
Disclosure: long MOO