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Economists View: Why Fake Economists are on TV
Pinnacle Digest writes: Middle-ground Economists continue to blur the lines of facts to promote themselves and indecision among European and American voters. Schiff wastes no time calling out Economist Mark Zandi (Moody's chief economist) for unknowingly revealing a central error in our current global economy.
Zandi believes the worst possible scenario involves Greece leaving the Euro zone. This is a flawed comment as it is widely believed that it was a mistake for Greece to enter the Euro zone in the first place. Economists largely agree that Greece has taken advantage of the other euro members by exploiting them to borrow irresponsibly. Most sane economists and citizens alike have come to the conclusion that countries such as Germany and Greece are too economically and culturally different to excel under a single monetary system.
Schiff argues that sometimes debt needs to be liquidated and that all bad ideas need to be abandoned. Without question the Euro zone was a bad idea. Economies must stop throwing good money after bad and begin investing in more viable worthy purposes. The problem with democratic policy is always the same; short-term benefits trump long-term solutions. Politicians in Europe seem to be solely focused on the next election and short-term fix. The fundamental issues facing Europe need a much longer time horizon to solve. This short-term thinking, which is prevalent in America as well, will only further harm our respective economies.
Interest rates must rise to market levels. Although the deleveraging process will be painful, it is the only real cure for the economy. Higher levels of productivity are needed if any real recovery is to be sustained. Until the people force politicians to put economics above politics, we will stay on the hamster wheel. Schiff gets into the details of what changes must be implemented and how economists like Zandi provide no real solutions.
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