{"id":11606,"date":"2015-08-29T20:06:54","date_gmt":"2015-08-30T01:06:54","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11606"},"modified":"2015-08-29T20:06:54","modified_gmt":"2015-08-30T01:06:54","slug":"citigroup-chief-economist-thinks-only-helicopter-money-can-save-the-world-now","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11606","title":{"rendered":"Citigroup Chief Economist Thinks Only “Helicopter Money” Can Save The World Now"},"content":{"rendered":"

Citigroup Chief Economist Thinks Only “Helicopter Money” Can Save The World Now<\/a><\/h3>\n

Having recently explained (in great detail) why QE4 (and 5, 6 & 7) were inevitable<\/a>\u00a0(despite the protestations of all central planners, except for perhaps Kocharlakota – who never met an economy he didn’t want to throw free money at), we found it fascinating that no lessor purveyor of the status quo’s view of the world – Citigroup’s chief economist Willem Buiter – that\u00a0a global recession is imminent and nothing but a major blast of fiscal spending financed by outright “helicopter” money from the central banks will avert the deepening crisis<\/strong>.Faced with China’s ‘Quantitative Tightening’<\/a>,\u00a0the economist who proclaimed “gold is a 6000-year old bubble”<\/a>and\u00a0cash should be banned<\/a>, concludes ominously,\u00a0“everybody will be adversely affected.”<\/em><\/strong><\/p>\n

China has bungled its attempt to slow the economy gently and is sliding into \u201cimminent recession\u201d, threatening to take the world with it over coming months, Citigroup has warned.\u00a0<\/strong>As The Telegraph’s Ambrose Evans-Pritchard reports, Willem Buiter, the bank\u2019s chief economist, said the country needs a major blast of fiscal spending financed by outright “helicopter” money from the bank to avert a deepening crisis.<\/p>\n

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Speaking on a panel at the Council of Foreign Relations in New York, Mr Buiter said\u00a0the dollar will \u201cgo through the roof\u201d if the US Federal Reserve lifts interest rates this year, compounding the crisis for emerging markets.<\/strong><\/div>\n

“So why it matters is that the competence of the Chinese authorities as managers of the macro economy is really in question<\/u><\/strong>\u00a0– the messing around with monetary policy, the hinting on doing things on the fiscal side through the policy banks. But I think\u00a0the only thing that is likely to stop China from going into, I think, recession<\/u><\/strong>\u00a0– which is, you know, 4 percent growth on the official data, the mendacious official data, for a year or so\u00a0– is a large consumption-oriented fiscal stimulus, funded through the central government and preferably monetized by the People\u2019s Bank of China.<\/u><\/strong><\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p><\/blockquote>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Citigroup Chief Economist Thinks Only “Helicopter Money” Can Save The World Now Having recently explained (in great detail) why QE4 (and 5, 6 & 7) were inevitable\u00a0(despite the protestations of all central planners, except for perhaps Kocharlakota – who never met an economy he didn’t want to throw free money at), we found it fascinating […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[130,1718,8541,303,5981,534,2914,2615,661,662,1264,1302,3650,4789,4318],"class_list":["post-11606","post","type-post","status-publish","format-standard","hentry","category-economics","tag-china","tag-citigroup","tag-council-of-foreign-relations","tag-fed","tag-helicopter-money","tag-monetary-policy","tag-pboc","tag-peoples-bank-of-china","tag-qe","tag-quantitative-easing","tag-recession","tag-status-quo","tag-us-federal-reserve","tag-willem-buiter","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11606"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11606\/revisions"}],"predecessor-version":[{"id":11607,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11606\/revisions\/11607"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}