Distribution Systems

I am sincerely tired of the discussions of the Financial Crisis. Money, the Flow of Money, and Central Bank action to stimulate that Flow is all One hears. The only other Story is the Drops in the markets due to the impediment in the flow of Money. Somewhere out in Left Field, a Few bemoan the increase in Prices year over year, but no One thinks that Inflation will be called up from the Bull Pen to the Mound. It would be humorous if not so destructive, because Home Sales, Mortgages, and the financing of Such does not drive the economy, nor does the Cost of Operating Capital for Business. What does matter is Jobs and Consumption, but no one examines these, except to bemoan the Job losses for the poor millionaires in the Financial markets.

I am bored with Central Bank policy to maintain liquidity, believing that Business will obtain Credit when there are Profits to be derived by the old expedient of paying more for the Cash. Cheap Money is not a goal in itself, and lots of Cash out there actually restricts Consumption, because liquidity first appears as higher Prices in Consumption. I would much rather develop a Stimulus bonus, or a draconian fiscal restraint policy. Idea: Give all Businesses a full Tax Credit if they give all Employees a $1/hour Raise; the Thought being that it would be Stimulus taxable on the level of Personal Income, and could have the Tax Credit removed after 3 years. Somehow, that seems to me to be revenue neutral.

I decided to provide you with some serious Thought, and came up with Post from Cactus. Central bankers would not be so concerned if the current Crisis did not evolve their professional friends. Maybe I vilify, and Central bankers simply understand liquidity than other aspects of the economy, but could I take my Share of that $900 billion in Cash; I have some bills to Pay. It is like all forms of Welfare, though, in that no one will give the aid directly to Those in Need; they always Hire and Pay some Welfare Worker an exorbitant Pay to distribute meager dispersions to Whoever needs help. lgl