...or not. Our financial gurus will never approve of any change in the current impetus of borrow/spend/print to expand the money supply. They must inflate forever to keep the Ponzi scheme "working", at the expense of old-fashioned debt-averse savers:
"If inflation is the genie, then deflation is the ogre that must be fought
decisively" said Christine Lagarde, head of the International Monetary Fund.
"Deflation can reduce personal consumption as people wait for prices to fall further, and discourage investment because it can raise the real cost of borrowing." Translation: "Deflation can force people, businesses and governments to live within their means, and prevent the injection of new credit into the stock markets, thus ending the illusion of economic growth."
ReplyDeleteFunny, I zeroed in on that line too.
ReplyDeleteProof positive that BBC doesn't cut-and-paste only Al Gore's press releases. Info from Lagarde and the World Bank is apparently infallible, altruistic, and beyond question as well.
Yes, and consider further: "...because it can raise the real cost of borrowing". Flip the coin over and see that deflation will similarly "raise the real gains of saving". That's what it all boils down to. Borrowers stealing from savers through inflation. When has that worked out well in the end?
ReplyDeleteI wish long-legged streak of misery Lagarde would drown in the bidet.
ReplyDeleteOkay. But what if there's a perfectly good crapper right beside it?
DeleteSo when do you figure Jim Flaherty will be calling Lagarde out for proposing actions that will hurt our kids?
ReplyDelete