(Karl Denninger)Just astounding, really....
As she closed in on her goal of bolstering the IMF's crisis-fighting coffers by more than $400 billion, Managing Director Christine Lagarde said the lender serves as an emergency backstop and that Europe must protect itself, boost economic growth and cut debt. Italian and Spanish bonds fell today as the G-20 noted "stress has increased as of late."
Really Christine? Europe must both boost economic growth and cut debt?
Uh, have you ever looked at the charts I've put together for the last five years?
There has been no economic growth in the United States ex-debt since 1980.
Would someone please ask Christine exactly how she proposes that nations do what she has put forward?
This is the problem -- lack of recognition of reality. Reality is that we have a monstrous debt bubble that has not been deflated, and it's not just here -- it's everywhere in the developed world. That bubble has to deflate before we can have true economic recovery, yet Christine and everyone else is desperately trying to avoid exactly that, because when, not if, it deflates so will the false asset "values" and false "profits" that the banking system has extracted from the public.
But there is no alternative, because exponential expansion can never succeed on a durable basis.
There is no recovery because there has been no recognition of the truth. And until there is, the lies stop and the covering up of those lies and their consequences ends there will be no "recovery" -- because mathematically there can't be.