Wednesday, May 7, 2014

At This Rate, A Return To "LIAR'S LOANS" Will Be Falsely Touted As A Credible Solution?

   (Commentary posted by Roger Erickson)



Consumer credit (keeps coming back to fiscal)

Once there are no more private savings to borrow and - credibly - invest ... then what?

Go back to spending & distributed investment of future public currency credits not yet partially clawed back, aka, "fiat" - or public initiative?

Or, persist in borrowing accumulated demand leakages ..... and hope to generate compound growth of a currency supply, while simultaneously constraining that supply?

We've done both before, with differing results.

Decisions, decisions. ...... will the next one be rational & honest, or fanciful & deceitful?



1 comment:

Ralph Musgrave said...

Right. I.e. the economic damage done by the “anti-fiscalists” (Rogoff, Reinhart and politicians) is of catastrophic proportions: vastly more than the economic damage done at Hiroshima and Nagasaki in 1945.