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Noah and the Ark
Genesis 41(King James Version):
33Now therefore let Pharaoh look out a man discreet and wise, and set him over the land of Egypt.
34Let Pharaoh do this, and let him appoint officers over the land, and take up the fifth part of the land of Egypt in the seven plenteous years.
35And let them gather all the food of those good years that come, and lay up corn under the hand of Pharaoh, and let them keep food in the cities.
No matter how much the Federal Reserve and Treasury inflate and tax our labour with increased deficits, the credit economy is contracting.
In 2007 and 2008 we experienced declining money multipliers, disappearing consumer savings and demand, polka dot prosperity and slower turnover.
This occurred no matter how much or often the President and Congress legislated bailouts, Federal Reserve debt money, or US Treasury taxed individual incomes.
Failure to respond or recover despite massive fiat loans used to be called pushing on a string. It happened in 1929, 1979, 2008 and may happen in 2029.
Government bailouts failed to generate real recovery because overall costs, deficits, defaults, deflation and markets are greater.
Do we really want a nominal 5% loan, when the real cost after 12% or greater deflation is 17% or more?
The Japanese economy lost two decades after the 1989 peak when inflated Japanese real estate the size of California was worth more than all of America. Pushing on a monetary and fiscal string created the boom, but did not stop the bust.
Roy C Smith Comeback, 1994, page 244.
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