John wrote:This is a generational Crisis era like the 1930s, and the only macroeconomic models that can tell you anything about what's coming are the macroeconomic models from the 1930s -- and the news that those models bring you is not good news. Even massive monetary and fiscal stimulus will do no good, as we've already seen time after time, and in fact will make the final disaster only worse.
In 1933 they decided to go off the gold standard and print money to get inflation. They did get inflation. They no longer had deflation. Deflation has never been an real problem since then. They think inflation is good. If you have wage and price controls then inflation is is a sneaky way of easing these off, and that can help the economy. But stimulus or inflation is not really good for the economy in the long term. A bigger government is worse for the economy. Stimulus, or government printing and spending money, results in a bigger government and lower growth in the long term.
Here is a 1933 inflation propaganda film:http://www.youtube.com/watch?v=JUvm9UgJ ... re=related
Long term bigger government makes for slower economic growth:http://pair.offshore.ai/38yearcycle/#governments