Quote of the Day

"There are some people who think we don’t have to take all these tough decisions to deal with our debts.

They say that our focus on deficit reduction is damaging growth.

And what we need to do is to spend more and borrow more.

It’s as if they think there’s some magic money tree.

Well let me tell you a plain truth: there isn’t."

David Cameron


Jim said…
Well Mr Cameron, you are very right there.

However, let me tell you a plain truth too. You seem to think that easy money policy (Super low interest rates and more lending) will help and fix the economy.

Newsflash : it won't

cheap easy fiat money policy is exactly what caused the last crash, and the one before, and come to think of it the one before that too. Cutting spending, lowering taxes and increasing interest rates will help.

An Analogy for dealing with downturns using easy money policy:

Pour on a pint of petrol to put out the fire, erm, I think we need a gallon more of petrol to sort it properly as the pint failed last time. Oh, big big fire we are going to need a 45 gallon drum of petrol to put this out. Looking like the fire is not going out, and things may get worse now, quick we had better get a petrol tanker on standby.

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