Here is what causes recessions after inflation:
Inflation=An unfunded increase in the money supply.
An unfunded increase in the money supply in America=Unfounded (not unfunded) Creation of Credit by Creditors.
Unfounded Creation of Credit by Creditors=Inordinate Increase in Insolvency because of debt + spending.
Inordinate Increase In Insolvency because of debt + spending = Stopping of spending out of fear of insolvency.
Stopping of spending = Recession (Rah Rah Rah! Recessions Ruin the Ruinous Reprecussions of inflation before they become unmanagable!)
As all the Bailouts and Bank Buyings are an increase in government spending (read: inflation), they will Help, not hurt, the Heave in the Health of the economy known as a recession. And a recession is made to be hurt. This is why Bush's Bank Buying Binge Be'th Bad Business. Even if it didn't increase the Socialist Status of the States.
Two Tail notes: I am not Sounding Sarcastic So Some people won't believe me; I just do it because it is fun to make Alliterations Ad nauseam. No Way Will We Want this Worthy post Translated To The Tounge of Illustrious Iberia.
Suscribirse a:
Enviar comentarios (Atom)
4 comentarios:
wow! That is a lot of alliteration! Anyways, I lost what you were trying to say in all the literary devices. =/
O.K. Here is the plain version (which you may, of course, translate into Spanish): When the governmen causes inflation, one of the necessary correlaries of it (I don't know why) is the lowering of interest rates to encourage people to spend the new money. This causes an increase in debt without real hope of investment being paid back. Once the consuming class collectively realizes this, they stop spending and a recession occurs. Because the recession is an inevitable occurrence that gets people behaiving sensibly in terms of spending, it ought to be allowed to run its course without increasing inflation by having the governemnt buy things (banks) beyond its means.
Pregunta a Don Pedro: los autores de Trade and Taxes son sus professores?
así son, el mío es el Señor Howard Richman. Es un genio! =)
Publicar un comentario