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Old 07-19-2011, 12:30 PM   #23 (permalink)
CheeseForSteeze
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Join Date: May 2011
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Spending and consumerism don't fuel an economy. Not when credit is lax and quantitative easing is the policy of corrupt central banking entities.

This is the same reason that you don't give a kid more money to spend to "fix" the problem of him running out of allowance. If credit is not disciplined and isn't generated from sources of actual savings, it is never allocated effeciently to most productive sectors.

Printing more money (or rather, keeping central lending rates low) does nothing but further undermine savings and investment vehicles which are denominated in nominal terms (papaer curriencies). This excacerbates the problem of undisciplined credit and further distorts what sectors of the economy actually contribute to production.
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