An economy continues, and segments of it change. One thing replaces another. I don't know if any one is capable of spurring an economy.
Well now, that's all the problem. No one is. No one is capable of laying out a prescription that will stimulate an economy. It isn't necessary to do so. It is natural that individuals will seek their own material betterment.
The only factor that inhibits individuals from doing this is government. Government seeks to stimulate the whole when there is no whole. It's an abstraction. If government wants to stimulate their abstraction, the only way is to help individuals stimulate themselves.
The solution is only in limiting the dollars that are in the economy where by all you are attempting to do is on a numerical base not create excessive dollars the result of that being a wheel barrel of dollars is required to purchase a loaf of bread.
Friedman, Greenspan, and everyone else agrees with you. However, Pandora's Box has already been opened. Thus societal engineers can only tinker and seek local results.
Yet with excessive debt you need an increased dollar base to solve the debt problem.
This has been the way chosen for hundreds of years. Inflate away the claims of past debt. It contradicts your previous assertion that there should be only one dollar of representation created for one dollar of value added. Debt dilution is a local result.
Again I know something is wrong as the way we manage debt as well as debt creation becoming too large a part of our economy.
Never. Debt only gets so large relative to debt's asset base before it's reeled in. For the last 5 years banks have been extremely tight with lending standards and the result has been years of declining C&I loans, so nothing is wrong on the debt front. It's being reeled in.
It not going to be easy to produce the dollars that are needed to solve the problem without creating too little value in our dollar.
True, but central banks can't venture up the path of the past by inflating away debt. If they did, the price of gold would rise, and the world would de facto return to a gold standard. This is not what central banks want. If that occurred, central banks lose control, and control, the power to make a prescription that will stimulate an economy, is the essential axiom behind modern economic theory. |
