Tuesday, January 27, 2009

Chomsky comments on handling of crisis

The following is an excerpt from a Press TV interview with political analyst Noam Chomsky on January 24, 2009:

...when Indonesia has a crisis, Argentina and everyone else, they are supposed to raise interest rates very high and privatize the economy, and cut down on public spending, measures like that. In the West, it is the exact opposite: lower interest rates to zero, move towards nationalization if necessary, pour money into the economy, have huge debts.

That is exactly the opposite of how the Third World is supposed to pay off its debts, and that this seems to pass without comment is remarkable.

Having read Naomi Klein's The Shock Doctrine, I noticed this convenient departure from the usual IMF "recipe for recovery" right away, and commented on it in this blog.

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