Usury, Debt Financing and Current Events

Now the powers-that-be banks are criticizing each other:

The question stems from lengthy (256 page PDF) from the BIS Annual Report (Bank for International Settlements) that stated among other things "The only source of lasting prosperity is a stronger supply side. It is essential to move away from debt as the main engine of growth."

Debt finance is making money on loans.  Supply side is demand based on customer preference.   The report leads like an autopsy, at the death of an economy and identifications in all the ways the body economic was perniciously ill and battered.

And this:

In particular, prolonged and aggressive easing reduces incentives to repair balance sheets and to implement necessary structural reforms, thereby hindering the needed reallocation of resources. It may also foster too much risk-taking in financial markets.

Ya think?

Reading the summary of the BIS reports, who can deny interest rates are at the heart of the financial milieu, and that this polity is currently regnant.  No one denies this, but 99.9999% or interested parties are only arguing as to how to manage it.  "Responsible parties" are are actually promoting a managed undoing of the damage, recognizing there is damage done by polices.

If, as I and the other .00001 percent argue, the problem is in the practice of interest, then no matter what prescription is brought to the malady, the failure rate will be 100%.  The winner of the policy course will be the loser in history for screwing up the economy.  Go get 'em!

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