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To: Gemlaoshi who wrote (90833)5/31/2012 12:41:09 PM
From: carranza2  Read Replies (1) | Respond to of 218243
 
The analogy of the financial system to flight has limited value, IMO, because it fails to consider debt. To make it complete, equating stimulation of demand with speed requires that debt be considered as fuel. The increasing amount of fuel (increasing amount of debt) inherent in stimulating flight (economic growth) means that at some point the use of all fuel results in a crash because fuel is finite. Debt of course is not, but enough of it will result in a stall and a crash.

And how do we know if we are low on fuel (high on debt), well, look around.