1inchrist

The Economic crisis this fall has everyone in an uproar. The entire situation can be easily illustrated in a fairy tale: The investors on Wall Street have been dubbed the “villain”, the people in debt up to their eyeballs play the part of the “damsel in distress”, the valiant knight in shining armor? Congress of course.

There is a twist to this fairy tale that so many of us have accepted with child-like gullibility. In the name of “protecting” said damsel, the knight in shining armor decided to create money out of thin air and give it to a third party without any oversight. Meanwhile, the villain is being rescued and the damsel is still sitting in distress, believing blindly that by saving the villain she’s being protected. You see, the some of the knights are conspiring with the villains, their seven trillion dollar figure is spent and no one knows what for. Now, since the knight realizes he made a mistake, rather than stepping up to the plate, he’s proposing two more rescues with the same plan - throw money at the villain. Instead of doing his job and enforcing the law and letting the villains learn from their mistakes, he’s giving them even more money in hopes that they’ll stop making bad investments and can cover their tails - completely ignoring the long term effect this will have on the damsel…who unwittingly is still in distress.

The knight never realized that in creating money out of thin air, the dame he’s sworn to protect, is going to pay for every penny of his decisions. Prices will rise and the distressed damsel will have to pay more while still in debt because of her faulty decision. The solution, they will eventually realize, was not throwing money at the problem, it would have been better to let the villain face the consequences.

This, my friends, is the basic explanation of the economic crisis we are facing today. Throwing money at the problem is never the answer and only creates more damage in the long term. If we let the investors alone to fix their own problem, and we made the decision to be responsible, we wouldn’t be in this situation nor looking at the possibility of inflation. The market always has, and if left alone, always will correct itself, the answer is not money nor panic, the answer, for everyone, is responsibility.

Trackback URI | Comments RSS