opebo
Atlas Legend
Posts: 47,009
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« on: October 26, 2012, 01:07:23 PM » |
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But why would you guys want to stimulate 'savings', whether 'real' or not? What is missing is spending/consumption/demand. The point is that this interest rate and Fed printing stimulus can't have any effect in a deflationary debt depression. Now, if the money printed were literally given out (dropped from helicopters in poor neighborhoods and the like) or used to directly buy distressed assets such as houses, or to pay off the budget shortfalls of states and local governments, that would work. But the whole point of debt deflation depressions is only direct govnerment spending can work, as 'private' investment can't happen.
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