Tuesday, January 13, 2009

A Gaping Hole in your Failed Economic Theories

I have goods and services and you have goods and services.

I want what you have to offer and you want what I have to offer.

I am standing around with my thumb up my ass while you are standing around with your dick in your hand.

Let a conventional economist attempt to explain this and we would start crying in frustration and rage whilst tearing our hair out.

I will make this simple, because what you are hearing is wrong.

Those little green symbols we use to trade with are missing. Some people put them in Swiss Bank accounts. We call those people "The Problem".

Now there are not enough little green symbols here in America. We need more of them and we need to print them. Not borrow them, print them.

Convention wisdom fears inflation, but seriously take a look around and read the first three lines of this post again. Those little green symbols are never coming back and that's the real problem. The US is not a banana republic, we have many things to trade with each other that we can't because we have no longer have a domestic instrument of trade.

To recap, our economy is sitting on the side of the road like a 5 year old Pontiac because the primary tool that makes it function, currency, is in artificially short supply. This is the elephant in the room that no one with authority wants to talk about.

Available currency has been diminishing for a long time. This problem has been masked for at least ten years by the now exploding credit market. Credit has been making the problem worse. Credit is only a crutch to stopgap temporary currency shortages, not a sensible replacement for it, and it's even worse as a long term solution.

The solution is simple, I call it the "Give Me Five Thousand Dollars Plan".

Then give the approximately 250 Million people who paid taxes last year Five Thousand Dollars too.

The result is that 250 Million people go out and attempt to fix the economy in their own creative American way, without the problem types skimming 6.9 to 29.9 percent off the top and sending it to Switzerland.

There it is, a 1.25 trillion dollar stimulus right where is needs to go, into the hands of those that need it the most.

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