Our current government appears apposed to quantitative easing (printing money), and are focused instead on budget cuts and borrowing.
The benefits of printing money is clear to most other countries, it helps exporters, and makes imports more expensive. Such a change is good for the economy, because exporters bring revenue to the country and imports take money out of the economy.
The downside of printing money is it decreases the value of savings, and makes our investments less attractive to overseas investors.
Such a shift in focus, if managed effectively and introduced slowely, would provide more benefits to working people and the country as a whole, and this benefit would be greater than the lessor returns for investors. Investors focussed on productive industries, would benefit from the changes.
The governments approach to cut budgets will hit specific industry groups hard as cuts often effect more than just those employees who lose jobs. Wellingtons economy will likely take a dive if significant civil roles are cut.
It's always good to make efficiencies, but large changes as proposed will hurt.
Printing money spreads costs and benefits fairly across the economy as a whole, and no specific industry/region takes the sharp edge.
Posted: Sunday 18 March 2012
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Great article, with 'bullet like' historical accuracy
?By this means (fractional reserve banking) government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft.?
- John Maynard Keynes, The Economic Consequences of the Peace (1920)
?Bankers own the earth; take it away from them but ...
Posted: 2012-04-02 17:21
by Bill Wallace
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