Skyrocketing prices with an empty wallet
For the last couple of years you hear about what I like to call the great recession. The job market is at an all time low with interest rates practically non-existent. What worries me about the times is the struggle between the consumer and the market. Usually when the bubble bursts and inflation has capped off, we have a sudden fall or deflation. What is happening in our markets today is somewhat of the opposite. While governments are devaluing currency by over production, prices are constant or even inflated.
Something is not adding up!!! Where are we headed?
Lowering interest rates and printing money is like putting a Band-Aid on a gunshot wound. Imagine if we were in the same situation that Europe is in. The European Commission realizes that printing money is not the answer. Don’t get me wrong; creating bank loans to other countries as bailouts is not exactly fixing the problem either. The times of digital money transferring from one country to the next is over. Germany is unable to support the continent financially.
Interesting Part for Debate!
The governments are in so much debt that honestly it is impossible to pay it back. The problem lies in the fact, that the government is not a money-making organization. So what about making some sort of mixed economics where the government can offer a service or product to create a profit. Can this be regulated through checks and balances? Don’t know just a thought.
What are your thoughts?