Message:

<p>[QUOTE=&quot;Sean5150, post: 2284669, member: 75607&quot;]What you&#039;re describing is sounding less like a healthy economy and more like a Ponzi scheme. Your views seem to only be slanted toward central banking and pretty much neglect GDP. The problem with the debt economy is in the end it always leads to hyperinflation because of it&#039;s nature.</p><p><br /></p><p>I will admit I am a layman when it comes to economics, but I do know central banks are pretty bad for an economy. The morality line is a bit misleading, I really don&#039;t think a corporation can have morality. That&#039;s why banks kept increasing their leverage ratios and then we had a collapse. Obviously too much debt is a bad thing, otherwise you&#039;re just describing a Ponzi scheme.</p><p><br /></p><p>Inflation is not simply the government spending money. There are so many other forces that cause inflation it&#039;s false to simply correlate it to debt. That is why we don&#039;t have inflation even when the Fed is pumping money into the system. You can&#039;t inflate your prices if no one is buying your product.</p><p><br /></p><p>I would actually say what is stunting the economy is the ever-growing income disparity. It skews the effects of natural market forces because the majority of the consumer base is getting poorer and poorer. In a way, you could say what is happening is a &quot;targeted&quot; inflation, where the base of the taxpayers are hit the hardest.</p><p><br /></p><p>Production stimulates an economy just as well as spending, but when wages are stagnating, inflation is not tenable. When there is no product to make, because all our jobs have been moved overseas, we have no GDP, just a bunch of bankers rationalizing all their debt and making nothing except more money for themselves to show for it. Money that is created out of nothing, i.e. debt.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in