I don’t get it. Savings are not savings, but rather money that is left sitting once you’re done consuming? Where’s the harm in not consuming?

Also. The private sector cannot borrow. The public sector can. From where? Don’t they need to borrow from the private sector, the sector that is itself over-leveraged?

Also. I’ve never understood why normal inflation would be a good thing. If it were, wouldn’t 10% inflation be good? 100%? Say that there existed an optimal price inflation level. (Personally I am more comfortable with the definition of inflation as expansion of the supply of money and credit). The tools to manipulate it are money supply and interest rates. That’s akin to trying to back up with 100 trailers behind you. Sure, it is possible in theory I suppose. But you’d probably be better of if you focused on one trailer at the time. Or just did nothing and let the people who care about the positions of trailers sort it out.

In Sweden the Riksbank is fighting to gain price inflation. Money is poured into the housing and asset markets which have marked increases, even astounding increases in price. Think the Riksbank measure housing and stock prices Nope. They measure “cost of living” though, of which interest payments are a giant factor. So every time they lower interests to stimulate the economy, not only do they immediately lower their own metric. They are completely ignoring the markets where prices increase. They pump here and measure there.

This is akin to backing up with a 100 trailers while drunk. Qui bono?

You’re extremely intelligent. And write fantastically well. And I feel like I should understand. But I don’t. That probably says more about me than you though.