Re: NFP and QE3 Speculations
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skipbreakfast post=3325 wrote: And so the irony is that eventually, it may become apparent that the only way to increase spending is to capitulate to the consumer and give them yield on their savings. Once they have yield on their savings, THEN they will spend something. Only then will they feel richer and use some extra interest income to buy a nice car.
Given that the vast ajority of Konsumers have no savings, increasing the yield on savings won’t make them feel any richer at all. So clearly, this plan only targets the Wealthy who have savings and sounds a lot like Trickle Down Economics, aka if the Wealthy spend freely, J6P gets a job at Starbucks.
The only thing that really can get the economy perking up is JOBS that pay enough money for people to actually be able to AFFORD to buy things for CASH and not on Credit. Is there any credible jobs plan on the horizon to do that, ANYWHERE on the entire globe? Nope. Not a single country has any credible plan for job creation, about the closest anybody comes would be the Chinese who built Ghost Cities and Bridges to Nowhere.
Without a Jobs Plan, there has to be a different means to distribute wealth, but the Dole isn’t too popular amongst those who work and are taxed to pay for it and besides that has all sorts of negative consequences besides.
The answer of course for any industrialized society is first off to Jubilee all the Debt and then put people to work deconstructing the industrial infrastructure, getting them out of the Big Shities and learning to practice permaculture farming while living mobile in Tents. Windmills can be built not to produce electricity, but rather to run mechanical equipment such as sawmills or Water Pumps on Windy Days. What Fossil Fuel energy we have left here can be used to melt down the steel and aluminum in skyscrapers and turn them into lots and lots of Bicycles. Plenty of old Car Tires around also to recycle into Bicycle tires. The miles of Copper wire and plumbing in Mcmansions can be refashioned into Stirling Engines to do still more mechanical work like running the compressors on refrigerators.
There is plenty of work to be done here to reconfigure society but sadly nobody in the Political Class will own up to the reality that Growth is FINISHED on the Industrial Model and that Managing Contraction by Reverse Engineering toward a low energy footprint society is what needs to be done here. As a result, instead of a managed contraction with hopefully manageable amounts of pain, we will get a CRASH with lots and lots of PAIN. So it goes.
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