Tuesday, April 5, 2011

The OECD is like the Wizard of Oz


Wizard of Oz © fintag

News comments:
The Wizard of Oz hid behind a curtain and told everyone what to do.

The OECD (Organisation for Economic Co-operation and Development) does pretty much the same. It really grates when this non profit organisation, funded by the world's richest countries, goes about telling countries what they should and shouldn't do. It's as if they are all card carry members of the "Plato's Republic" society.

The OECD is funded 25% by the USA so no wonder it has in recent times spent a lot of its USD500m budget flagging up tax havens and criticizing countries for having low tax as if low tax was a sin. I thought low tax demonstrated prudence but when tax hungry countries like the USA are involved, they will slag off anything that takes income away from them.

The USA should get its house in order. With Geitner fighting to get the USA credit card limit increased, or people will be on the streets, (bloomberg), you know why the USA loves to support the OECD.

The Republicans realize like most Americans and the rest of the world that debt is bad. The fact they want to follow the UK and slash public budgets makes sense and it it is no surprise that the socialist leaning OECD comes out and says the UK will have slower growth than everyone else because of its cost cutting. (telegraph)

[Update: And so the Tea Party have decided a USD6Trillion budget slash is in order - take that Obama ... (bloomberg)]

Growth with debt, Ireland style, isn't a good idea but the OECD seems to think it is.

There is something sinister about the OECD I don't like. It is always predicting. Does anybody ever monitor if these predictions ever turn out correct? I wish someone would and hold this waste of space organization to account. [Editor: spelled with a z too.]

Today's shorts:
OECD says G7 will be fine (except Japan) (huffpost)

Today's longs:
Chinese raise rates again (cityam) because it is running scared of inflation (fintag)

UK to leave the OECD to save money.