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Joseph Stiglitz wants
central banks to effectively fight economic under-performance -- not
just chase lowest possible inflation.
He also proposes global
greenbacks as a new currency (to be authorized, issued and lent
to nations by the IMF) as appropriate currency for nations to hold
in reserve to protect the viability of a domestic
currency if required to do so by the IMF.
He claims that if
America and other far thinking hard currency nations would
accept IMF greenbacks as a satisfactory reserve deposit currency,
they could jawbone and unilaterally pressure for their general
acceptance by virtually all other nations connected to the
IMF.
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Ben Bernanke does not
speak of global greenbacks.
But thinking of the need
to improve America's democratic political economy and prospects for
world peace, he does talk of domestic greenbacks to be issued and
spent or lent into circulation here, (if necessary,) -- to head off or
reverse deflation and depression.
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Other voices, (not from
money cranks,) like George Soros' and James Wolfenson's, have agreed
with Stiglitz and Bernanke on the direction the global economy ought to
take -- to grow, to strengthen democracy, to protect the
environment, and to improve the fortunes of people who work for a
living.
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The PKT consensus in
this general policy area appears to me to be to redistribute income
so that people who consume too little for their own health and the
health of society would consume more.
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Income can be
redistributed by an infinite number of reforms to the way the
global economy works. Global greenbacks is one way. Domestic greenbacks
is another.
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Lower taxes on the poor
is yet another.
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President Bush thinks
lower taxes for business and investors (as well as the poor) is
another way to grow the economy.
It would not
redistribute significant income to the poor -- but it might create some
jobs for them.
In fact, it
redistributes income back to the rich on the theory they paid more tax
than was good for the country.