SamuelRSmith on 16 September 2012
| Mr Khan said: It seems to me that the economy as a whole is waiting on something, at which point we'll see an explosion of both economic activity as that money is freed up, followed soon after by rapid inflation, but once groups are spending the money again, the inflation will be easier to tame. |
The economy isn't waiting on anything.
The banks are hunkering down until their capital stops diminishing/returns to growth. Until that point, you can print up all the money in the world, the banks won't use it. How dow we get capital values to turn around? Well, first off, we need to let it bottom out, rather than using all this "stimulus" and such to delay the inevitable.
