September 3, 2012

IF THE BANKS WON'T LOWER THE RATES...:

We can't grow ourselves out of debt, no matter what the Federal Reserve does : Let's replace our fixation on growth with a steady-state economy focusing on lower consumption, leisure and ecological health (Charles Eisenstein, 9/03/12, guardian.co.uk)

Unemployment could translate into greater leisure for all. Lower consumption could translate into reclaiming life from money, reskilling, reconnecting, sharing.

Central banks could play a role in this transition. For example, what if quantitative easing were combined with debt forgiveness? The banks get bailout after bailout - what about the rest of us? The Fed could purchase student loans, mortgages or consumer debt and, by fiat, reduce interest rates on those loans to zero, or even reduce principal. That would liberate millions from the debt chase, while freeing up purchasing power for those who are truly underconsuming.


...the Fed should.  But tax policy should drive the return to consumers into savings, rather than consumption.


Posted by at September 3, 2012 10:54 AM
  

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