A petty shopkeeper got completely broke. Instead of bringing down the shutters, he reinforced his shop with high value goodies and catchy snacks.
I was shocked. What on earth the man is doing?Is he in his senses?How did he muster money to give a face lift to his shop? As curiosity kills the cat, I made discreet inquiries,which revealed that he has borrowed money for high interest. I was muffled.
Can we term this economy as “Progressive economy”?
Well the same dogma is followed by the U.S., in a gigantic scale.The doctrine of debt , has been put into force. Borrow more, spend more, keep the economy booming.
Printing paper money against thin air, and circulating it, will move the stagnant economy is the Fed’s prscription.
U. S President elect Obama has drawn out plans to 700 billion$ to build roads and classrooms ,thus creating jobs.
The Fed has extended its balance sheet from about 900billion$to more than 2.2 trillion . The 1.3 trillion is a cooked up figure, which in reality does not exist.
Overborrowing has led to the present mess.Borrowing further ,with the aim to get out of debt trap ,is ignominous. It is a foolhardy attempt.
Postponing soberity and austerity will lead to great crisis
U.S. has to trim its expenses, practise frugality,and make amends for its reckless consumption and extravagant spending.It is a bitter medicine hard to swallow, but has to be pushed through the gullet ,to save the nation from disaster.
If not it has to go back to the days of misery.