Time for printing money
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
★★★★★?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 leave them with the power to create credit; and, with a flick of a pen, they will create enough money to buy it back again... If you want to be slaves of bankers and pay the cost of your own slavery, then let the bankers control money and control credit.? - Sir Josiah Stamp, Director, Bank of England, 1940. ?It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before morning.? - Henry Ford The above are not idiots. The author of this article, I'm not so sure.Posted: 2012-04-02 17:21 by Bill Wallace