Stiglitz: We need more spending to cure over-spending

Left-wing "economist" and political activist Jospeh Stiglitz is telling governments around the world to continue stimulus measures or else risk eating into "aggregate demand".

He says:

"As so many countries cut back on spending prematurely, global aggregate demand will be lowered and growth will slow - even perhaps leading to a double-dip recession."

"Aggregate demand" is a buzz-phrase of Keynesians like Stiglitz. The problem is that it doesn't actually mean anything. The recession is the result of the wrecking caused by central banking, which causes an economy-wide diversion of resources from areas more consistent with consumer preference to areas that are less consistent with consumer preference. This situation only continues via chronic low interest rates, which eventually have to rise to prevent hyperinflation. When they do, the misallocation of resources is revealed and alot of long-term projects go broke.