A PIE IN THE FACE IS WORTH TWO IN THE BUSH
Nov 8th, 2007 by Conor McCabe
the answer to a downturn is to print money. Recessions happen because people stop spending cash and they save it instead. Printing money kick-starts spending and, by printing cash, countries can get out of recessions very quickly. In the real world, the coupon issuers are central bankers.”(David McWilliams, ‘Hire a babysitter and hit town to save the economy‘, 7 November 2007,)
Why do I even bother?
The world is in the middle of a credit crisis. Nobody knows just how much money is worth these days, as we’re still trying to chase the repackaged debts, and McWilliams wants the EU to print more money in order to get ourselves out of the situation.
There you go. The Chinese are talking about dumping their dollar reserves onto the international markets. By McWilliams’ reckoning, they’ll be doing the Yanks a favour. All those extra dollars to help the Americans out of the little bit of bother they find themselves in at the moment. Mind you, with few banks willing (or able) to give out unsustainable loans while we’re in the middle of a credit meltdown, it’s hard to see how these extra dollars are going to reach the hands of those consumers that need them in order to keep them spend spend spending.
Anyway, here’s an altogether more pleasant approach to getting ourselves out of this current economic mess. That is, it makes about as much sense as McWilliams’ call for a merry dance with hyperinflation. And it’s a lot more fun as well.
Enjoy.
