Would a "Third New Deal" Help present day United States?

[SamuelRSmith]

There's no easy way out of this situation.

It's not consumption that drives economic growth, but production, for which you need investment. You cannot have investment without savings, and when you have "near zero" interest rates, and price increases running into double digit percentages each year, you're plain and simple not going to get people saving.

So the two fundamental things that need to be fixed are the price increases, and the interest rates. They go hand-in-hand, as the primary force behind the price increases is inflation of the money supply, which is done to force interest rates down.

This policy is based on the flawed belief that consumption drives growth, and not production. Unfortunately, most Gov'ts are in a catch-22, the only way they can sustain the illusion that they're remotely solvent is by manipulating the currency supply, letting interest rates go up will force Governmental defaults around the world so fast your head will spin.

So, the one thing that needs to happen cannot happen. Governments cannot default because of a) the large swathes of the population that are dependant on those debts, and b) The debts are held by the people who bankrolled the politicians.

The recession/collapse began in 2008, with signs of struggle in the years before then. It is now 2013. That's 5 years. Five. Fucking. Years of the same policies failing. Let's try the things that were suggested by the only people who predicted the collapse in the first place.