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| Joined: | Mon Nov 21st, 2005 |
| Location: | California USA |
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So let's not demonize the consuming public for doing what it should be doing. It's a good rule of thumb that when the government tells you to spend money, close your wallet.
http://www.lewrockwell.com/rockwell/consumer-recession.html
Is that the 'let them eat cake' club?
The solution to their created problem (yes - they create the problem when they push for 'high interest' currency) is to reduce velocity by making currency even more scarce.
The actual Mises dude (not the Menger dude) solves the problem with open currency markets. Think in terms of legal counterfeiting or legal black markets in currency. Anyone can join in the open competition to supply the demand for currency – anyone.
Imagine, for example, the major corporations paying their employees with company stock issue.
How about Google and Microsoft as examples of new currency printed by Google and Microsoft and those items flowing through the world social structure as currency and think hard on this if it seems to be ‘stupid’?
Who would be rich enough to continue consuming (sustaining a decent life)?
Who would accept Google ‘cash’?
Note: Google stock went up 200 percent in one year (as far as I know).
How about a new company that makes Solar Panels with the new technology whereby the cost per watt has reduced from 6 dollars a watt to 1 dollar a watt?
How much would their currency be worth to, say, the people at WalMart or Food Mart?
Would the ‘executives’ at WalMart accept Solar Panel currency and therefore allow anyone having Solar Panel currency (or Google stock) to exchange their new currency for food, clothes, etc.?
The problem is a scarcity of currency exacerbated by the extreme lack of quality of the ‘legal’ currency (the currency enforced by ‘the powers that be’ is rotten, inaccurate, soaked with blood and oil and fraudulent – on purpose).
The solution is not to ‘stop spending’ unless, of course, that really means ‘stop buying much more than needed long enough to jack up the interest rates and then resume buying much more than needed while making a killing from the scarcity of fraudulent ‘legal’ currency.’
If a person is barely surviving on what little they spend, then, the advice of ‘stop spending’ is ‘starve’; hence – let them eat cake.