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 – unprecedented in size and scale – 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’t help it at all,” he told a conference in London.
“It’s taking from one type of people and giving it to another… It’s net zero. It’s taking from non-banks and giving to banks. It’s taking from the innocent and giving to the guilty. It’s Robin Hood in reverse.”