Monday, October 11, 2010

Spend to Revive the Economy?

Perhaps I'm just crazy but I disagree with the Fed Head Bernanke's thinking that it is consumer spending that is the key to pulling us out of this recession.   I may not have the piece of paper (AKA finance degree) that says I ought to know about finance, but I do have a brain and can not understand why the Fed thinks that spending more money when you already have a huge deficit will pull you out of a recession.    I thought by now the Fed would have slowed down it's printing and not promise anymore bailouts but they said they were going to do just the opposite at the last hearing.   I believe the bailouts and all this government spending in 2008 helped slow down the speed at which our economy is falling into recession but it did nothing to bring us out of one.  Deficit spending does not allow for a country to grow economically and improve it's productive capacity.   To think so is pure madness. Why?


Saturday, October 2, 2010

What is Money?


What is money exactly?  At first it might seem obvious what money is, but is the definition of money really as simple as saying it's the dollar and quarter sitting in your wallet?  I don't think so and this may explain why the term paper money creates a lot of confusion.