Engineering the End of Hard Times...

Our economy grows on credit.  All the while it's growing, credit use is growing.  And credit use creates debt.  But it also adds to the money supply.  To fight inflation, the Federal Reserve takes money out of circulation.

Every time you look, we have more debt than we had before, and less money to pay it off.  That is a problem. It is the problem.

The solution is to fight inflation by paying down debt.  Congress sets up tax incentives to accelerate the repayment of debt.  We pay down debt, reducing M1 and preventing inflation.
That is the new Arthurian economics.  Click the NAE logo for my 12-page PDF.
 
Not the printed dollar, but the $35 of credit-money erected upon it, is the cause of inflation today.
Excessive reliance on credit  is the cause of inflation, and of stagnation, and debt accumulation, and
finally, of Mr. Paulson's credit crisis. And excessive reliance on credit is the result of economic policy.
 'The time has come,' the Walrus said, 'to talk of many things:
Of shoes, and ships, and sealing wax, of cabbages and kings,
And why the sea is boiling hot, and whether pigs have wings.'

Lewis Carroll, Through the Looking-Glass
T The New Arthurian Economics
Copyright 2009 Arthur Shipman
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