Outside of Washington and Wall Street, Who Hasn’t Figured Out That A Debt-Based Economy Isn’t Sustainable?
Economists tell us that we may see some signs of economic recovery later in the year. I’ve seen many quotes like this one in today’s Washington Post article:
Many analysts now think the economy will not improve until later this year, provided a government stimulus plan kicks in.
What are they basing this on? The government stimulus package won’t create that many jobs in a few months and in the meantime the economy continues to contract as consumers have stopped spending.
An economy and financial system constructed with debt is only as good as its building materials – the assets. If the assets are massively devalued, the debt is worth a lot less. Pumping more money into financial institutions is a waste of time, as two articles in the Paperweight section point out, and Arts and Palaver notes as well.
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