simon johnson

Napoleon’s advice to President Obama about the financial crisis

Summary:  Team Obama has chosen the soft path to economic recovery.  Spend money while stalling any substantial reforms.  No confronting our deep structural reforms, just wait for the recovery due later this year.  It might work — reliable forecasts are difficult or impossible these days — but its failure would leave us far weaker, making …

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The world changed last week, unreported and unseen

The world changed last week, unreported by the media and hence unseen by most Americans.   Our locked orientation — seeing ourselves as the hegemonic or imperial power — blinds us to the almost inevitable evolution of the world to a multi-polar order.  In the 21st century the center of economic power moves from West to East.  This blindness …

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America on its way from superpower to banana republic

I have long said that our choices will determine how this downcycle ends.  We can confront and resolve our problems — or take the seemingly easy way of banana republics.  Print money, socialize the losses of elites and the middle class, continue to run America as before — deny our errors and refuse to learn.  …

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Obama makes his first major policy error

Summary:  The Obama Administration is continuing the Bush team’s Wall Street friendly policies, probably because they believe, as do most economists, that the downturn will hit bottom in the 2nd half of this year, and slow growth will resume next year.  That’s bad.  As a result they are missing an opportunity to fix the financial system, clearing …

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A very important article by an expert, discussing the necessary next step to solve the financial crisis

Here is some sound advice from an experienced professional.  I strongly recommend reading this in full;   “High Noon: Geithner v. the American Oligarchs“, Simon Johnson, The Baseline Scenario, 8 February 2009. Johnson was chief economist of the IMF, now a professor at the MIT Sloan School of Management and senior fellow at the Peterson Institute for International …

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