eric76 wrote:
K_Kelly wrote:
Well I just wish we had more time since it appears we ran out of time to fix our country. Things might just collapse sooner than you think.
We currently cannot find enough suckers to loan the government money so it is borrowing large amounts from the Federal Reserve. In essence,
the Federal Reserve is printing fiat money in order that the government can remain on a spending spree. If that money was for investment, it would not be as bad because we could expect that it would eventually result in an economic expansion that would return more than was borrowed to the country. But for consumption, it is just gone and we get nothing for it except debt.The amount of
money being created out of thin air is bad, but would not completely disastrous if the government had any sense of fiscal responsible. Since that is not the case, it is not likely that our spending will decrease and the debt will keep growing until it can grow no more.
Okay, so what do you think is being consumed THAT DOES NOT REQUIRE INVESTMENT TO PRODUCE?
Concerning money being created out of thin air, did you know that expanding the money supply is a common tool for stimulating economic growth?
A POSSIBLE bad side effect of this is inflation IF TOO MUCH is created because "too much money will be chasing too few goods" thus driving up prices...
CURRENTLY, THIS IS NOT HAPPENING.The things that are currently holding back the national and world economies are related to low inflation/deflation (see Japan) and poor consumer demand. One reason for this is because too much money is being hoarded at the top by banks and 1%ers. What we need is more consumption and that is most easily achieved by putting money in the hands of PEOPLE WHO WILL SPEND IT IN THE REAL ECONOMY--buying groceries, paying rent, going to movies, eating at restaurants, getting hair cuts, buying Christmas presents, etc.
That's the sort of economic activity that creates demand, stimulates investment and creates jobs. People with jobs spend even more money in a virtuous cycle that benefits everyone.
You know, what's really destroying this country are good intentions misdirected by ignorance.
The best thing you could do to save the country is
TAKE AN ECONOMICS CLASS.
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No man is free who is not master of himself.~Epictetus