Letter to the Editor CT 31st Jan – solving credit crisis
There are four general solutions to the financial crisis caused by the world wide issue of excessive debt. The first solution is the depression route that destroys the excess debt by letting businesses and individuals go bankrupt. The second is to “double” our bet and increase the amount of debt through fiscal stimulus. The third is let inflation lose and get rid of the debt by deflating the value of money and hence debt. The fourth solution is to remove the link between debt and money and create new money by creating new productive assets. The fourth solution is simple, easy to do, and in the long term brings zero inflation, financial stability and greater wealth to the whole community.