Corrupt IMF says high unemployment to persist

unemployment rate by country

imf world bank many poor banner

“”The high degree of financial stress and the high degree of uncertainty all weigh against a speedy recovery in job creation,” the Washington Post quoted the IMF as saying.”

“Unemployment in industrialized countries will likely remain high this year and next, and central banks should keep interest rates low, the International Monetary Fund said Wednesday. It also said governments should be prepared to spend on job creation.”

Let’s get things straight: you cannot spend your way into prosperity,wealth creation as jobs come from savings which in turn create capital investment (manufacturing), entrepreneurship with people seeking profit. Low interest rates means inflation of the supply of money therefore undermining savers, and chasing capital away, which adds regulation, price controls and higher taxes and we could be talking about the same lack of jobs for a decade. Infrastructure is wonderful but this is something that should be done with surpluses not in bad times.

unemployment rate by country

Indeed, the media is spending a considerable amount of time telling us how dismal the economy is going to be. The reporters are working hard and doing swell, getting those stories from the various experts. And let us not kid ourselves the work is tough, getting the latest press release or communique issued by some think-tank or learned economist. Of course journalistic integrity demands verification which means a phone call maybe even a meeting with the forecasting body to confirm the facts of the story.

U.S. unemployment expected to remain high, IMF says

By: Michael Ranson – Thursday, April 15, 2010 at 1:21am

More workers may be looking for jobs online if the unemployment rate remains high.

And high unemployment is likely to dog the U.S. for some time, the International Monetary Fund said Wednesday. The agency expects unemployment to stay elevated in America for as many as two years.

Even though jobs are being created, the rate of job creation is projected to be slower than the labor force’s growth. Therefore, the unemployment rate will remain inflated.

“The high degree of financial stress and the high degree of uncertainty all weigh against a speedy recovery in job creation,” the Washington Post quoted the IMF as saying.

But even as jobs remain hard to come by, online work is growing in popularity. According to oDesk’s March Online Jobs Report, more than 1,000 freelance workers joined oDesk each day. And companies are taking note: Job postings surged between February and March.

Last month, 44,610 jobs went up on oDesk. That number is likely to rise as more people establish worker profiles and companies outsource more frequently; online work could be a bright spot in an otherwise tepid job market. Source: ODesk.com

Let us not forget the time and effort spent on putting the right spin on the story to ensure that the average person on the street feels the fear and despair. It is hard tough work, but the millions of news hungry people the world over have a right to know about the impending disaster. This is capitalism we are talking about here, after all. It is that economic system Karl Marx had prophesied will teeter from crisis to crisis until the final collapse; the final collapse which will usher in the great proletarian revolution. The revolution, the inevitability of which, most university professors have spent years indoctrinating their students about.

Unfortunately for those professors and the students they have indoctrinated, free enterprise and capitalism will quite likely survive this latest crisis as it has every other crisis.

It will survive not because of government bail-outs or an army of social workers singing “Kumbaya” with the great unwashed. No, free enterprise will survive and come back even stronger because entrepreneurs will find a way to begin creating wealth again.
So the important question to those who pen the news is this:

Rather than waiting for the latest missive from some ivory-tower to come across their desks, why aren’t these journalists out there digging up stories about those entrepreneurs who are beating the odds against this recession, creating jobs and wealth along the way as well generating the tax revenues that governments will be using to finance their bail-outs of inefficient corporations.

Responsible journalism is not being an agent of despair. It is objectively reporting on the broad spectrum of events that occur in the real world, and if our learned journalists were to do so, maybe they would discover that the dire predictions they are fixated on aren’t reflected in the reality.

What mainstream media won’t report

It would be commendable to see one of the mainstream media’s investigative reporters look into the collusion of Goldman Sachs, as well as exposing the truth about the international monetary fund.

imf lending chart

The IMF is responsible for devastating suffering around the world; it destroyed the economy of Argentina and Ecuador and it bewilders me how it hasn’t been tried for crimes against humanity. It is behind the biggest shift of wealth from the middle class to the already obscenely rich.

Argentina, which had been considered by the IMF to be a model country in its compliance to policy proposals by the Bretton Woods institutions, experienced a catastrophic economic crisis in 2001, which some believe to have been caused by IMF-induced budget restrictions — which undercut the government’s ability to sustain national infrastructure even in crucial areas such as health, education, and security — and privatization of strategically vital national resources. Others attribute the crisis to Argentina’s misdesigned fiscal federalism, which caused subnational spending to increase rapidly. The crisis added to widespread hatred of this institution in Argentina and other South American countries, with many blaming the IMF for the region’s economic problems. The current — as of early 2006 — trend towards moderate left-wing governments in the region and a growing concern with the development of a regional economic policy largely independent of big business pressures has been ascribed to this crisis.

Another example of where IMF Structural Adjustment Programmes aggravated the problem was in Kenya. Before the IMF got involved in the country, the Kenyan central bank oversaw all currency movements in and out of the country. The IMF mandated that the Kenyan central bank had to allow easier currency movement. However, the adjustment resulted in very little foreign investment, but allowed Kamlesh Manusuklal Damji Pattni, with the help of corrupt government officials, to siphon off billions of Kenyan shillings in what came to be known as the Goldenberg scandal, leaving the country worse off than it was before the IMF reforms were implemented. In an interview, the former Romanian Prime Minister Tăriceanu stated that “Since 2005, IMF is constantly making mistakes when it appreciates the country’s economic performances”. Source: wikipedia

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