This financial crisis seems really stupid, but not as stupid as the solution…?
The crisis is caused by over indebtedness, what’s suppose to happen, is you let the bubble deflate, tighten up credit, and allow people to save, this corrects things and protects the value of money, because a disincentive to borrow money is a disincentive to print more of it, which encourages savings which is where capital is suppose to come from, so why is it, that when the debt bubble starts to collapse, the response is, inflate the debt bubble, print new money, buy bad debt from banks, and generally flood the market with easy credit, why solve the problem of excessive debt, with more debt? This is a disincentive to save because in this environment you have to spend your money while it still retains it’s purchasing power, I don’t get why every country in the world is doing this.
VhdlMe, I realise I’m simplifying something that is complex, but who has the right to control the supply and purchasing power of our money? what I don’t understand is that we’re suppose to have absolute freedom in everything else, but a dictatorship of money.