The real cost of Ben Bernanke's Potemkin economics in the long run.
We all know that this is planet Earth where resources are finite. There might be no need to quote religion as U are "aethist to world religions", however I still explain somewhat here that God in Genesis ch3(garden of Eden/ the fall) sentenced Adam to toil the soil (work hard and probably not depend on borrowed credit) and the rest is history.
My point is that your economic explanation is superficially correct only (and might be missing the point), just like the family of a bank robber 'earns' sufficient to afford much/ live well: only until the breadwinner (robber) gets caught and convicted, and then everything for his family collapses/ falls apart.
U know credit can only be obtained based on trust: as such, it can also be considered a limited commodity. All your economic high theory only works when people actually trust and work for $$$- evidently, that works now, still, the trust in the $USD is fast eroding, at least where the rise in gold prices reveals the fast erosion of $USD value in the international market. China might be a key consumer of the $USD bonds, providing QE to the US economy in some form, but even China's economy is somewhat unstable: as all dictatorial/ communist economies are.
What I fear happening due to all these Potemkin economic boosting schemes (i.e. QE) is that there forms a permanently enlarging population of poor and disenchanted people in BOTH Chinese and USA economies which will be permanently dependent on government handouts and support pork barrel politicians, the greater their sweet talk/ lies. A high degree of discord and corruption and crime will occur in many areas of society and when that happens, there will be MANY structural problems ranging from unemployment to marital discord to homelessness, disease and life endangering air/ water pollution, robberies/ rapes and an array of crimes against persons. That I feel, is might become a greater problem than any particular $ credit crunch, and the credit crunch situation itself might just be a minor symptom of a very large problem (people returning to a state shunning credit with simple lives/ barter).
Yes, total spending on a select basket of goods might not increase (headline inflation rt= zero), but if U add in the inflating costs of healthcare in middle and old age (due to the ravages of pollution and a very stressful work/ family life) as well as a possibly shortened lifespan, reduced retirement or the suffering inflicted by crime: then only would U get a better picture of the real effect of the additional costs incurred and the consequent quality of life deflation suffered by the average consumer due to a "consumption rate" or "spending" that might have been excessive (stimulated by QE) in the first place.
Credit is never really cheap. Any good parent/ teacher will tell you that. Short term gain, long term pain (& vice versa): that is a good rule to live by.
Life cannot be only about growing a number called a GDP, cos to live like that would be like having the life of a machine- one purpose, one KPI. And we all know how machines are always treated as stupid/ used like puppets: hardly the ideal life; we all know that don't we?
Hi SixNein, would appreciate if U quoted the context with bold font to highlight (as I have done for your case)' anyhow, regarding Quantitative Easing ('QE'):SixNein said:
We all know that this is planet Earth where resources are finite. There might be no need to quote religion as U are "aethist to world religions", however I still explain somewhat here that God in Genesis ch3(garden of Eden/ the fall) sentenced Adam to toil the soil (work hard and probably not depend on borrowed credit) and the rest is history.
My point is that your economic explanation is superficially correct only (and might be missing the point), just like the family of a bank robber 'earns' sufficient to afford much/ live well: only until the breadwinner (robber) gets caught and convicted, and then everything for his family collapses/ falls apart.
U know credit can only be obtained based on trust: as such, it can also be considered a limited commodity. All your economic high theory only works when people actually trust and work for $$$- evidently, that works now, still, the trust in the $USD is fast eroding, at least where the rise in gold prices reveals the fast erosion of $USD value in the international market. China might be a key consumer of the $USD bonds, providing QE to the US economy in some form, but even China's economy is somewhat unstable: as all dictatorial/ communist economies are.
What I fear happening due to all these Potemkin economic boosting schemes (i.e. QE) is that there forms a permanently enlarging population of poor and disenchanted people in BOTH Chinese and USA economies which will be permanently dependent on government handouts and support pork barrel politicians, the greater their sweet talk/ lies. A high degree of discord and corruption and crime will occur in many areas of society and when that happens, there will be MANY structural problems ranging from unemployment to marital discord to homelessness, disease and life endangering air/ water pollution, robberies/ rapes and an array of crimes against persons. That I feel, is might become a greater problem than any particular $ credit crunch, and the credit crunch situation itself might just be a minor symptom of a very large problem (people returning to a state shunning credit with simple lives/ barter).
Yes, total spending on a select basket of goods might not increase (headline inflation rt= zero), but if U add in the inflating costs of healthcare in middle and old age (due to the ravages of pollution and a very stressful work/ family life) as well as a possibly shortened lifespan, reduced retirement or the suffering inflicted by crime: then only would U get a better picture of the real effect of the additional costs incurred and the consequent quality of life deflation suffered by the average consumer due to a "consumption rate" or "spending" that might have been excessive (stimulated by QE) in the first place.
Credit is never really cheap. Any good parent/ teacher will tell you that. Short term gain, long term pain (& vice versa): that is a good rule to live by.
Life cannot be only about growing a number called a GDP, cos to live like that would be like having the life of a machine- one purpose, one KPI. And we all know how machines are always treated as stupid/ used like puppets: hardly the ideal life; we all know that don't we?
