Robin Hood in reverse?
Thirty-first U.S. President Herbert Clark Hoover once said: “Blessed are the young, for they shall inherit the national debt.”
Governments around the world are borrowing heavily to finance their fiscal expansion ‚Äď unprecedented in size and scale ‚Äď to prevent severe economic downturn.
However, outspoken independent economist Roger Nightingale thinks fiscal stimulus will not work.
He predicts a severe, Japanese-style recession to hit major and developing markets.
“There is no way out of this problem. Fiscal policy won‚Äôt help it at all,” he told a conference in London.
“It‚Äôs taking from one type of people and giving it to another‚Ä¶ It‚Äôs net zero. It‚Äôs taking from non-banks and giving to banks. It‚Äôs taking from the innocent and giving to the guilty. It‚Äôs Robin Hood in reverse.”