A sustained booming economy, is it possible?
Can we sustain a booming economy without over extend our resources? That is the question FEDs asked of themselves each month. They think that raising interest rates will prevent over extension of our resources.
Nothing could be further from the truth. Our resources are limited from raw materials found on the earth, to human resources depending on population growth. It is planning of activities that will use all the resources properly. What we lack, we will substitute another, by design of products and services.
How then we can sustain our economy? By obsolescence and replacement then recycling, we can sustain our economy. Recycling of carbon, for instance, give us renewed energy and renewed food subsistence.
Raising interest rate theoretically will tighten our monetary policy; it will damage our liquidity structure and pull us into recession.
Planning of the future resource availability will sustain and grow our economy. Recycling of raw materials is the way. Monetary policy has to take a back seat to the planning of the usage of resources in our new economy. Monetary policy will have to allow the free expansion of economy based on demands of human beings and their changing standard of living. Some day, FEDs will look at the planning before putting their foot in their mouth. Total usage of energy, food, shelters and transportation, maybe even recreation, by our country or the rest of the world, would be the planning of our new economy? Monetary policy must follow, never stalling, the new economical growth. |
