I don't care if savers are the minority at the moment. I do know that if we operate monetary policy to help people who took on more debt than they were capable of servicing, we will have even less savers in the future (as what incentive would there be?)
" Bottom line is EVERYONE has either benefited from the leverage economy either directly or indirectly "
Now that statement is classic. I really wonder how the direction of vast amounts of investment capital to non productive parts of the economy has benefited everyone. (as a small, tangentially related example, notice the Vic govt closing a major science research facility, but cutting stamp duty for first home buyers...awesome). Why be an innovative more productive country when we can just flip properties in a debt fuelled ponzi scheme?
Also I wonder how illusory wealth has benefited everyone (other than those who sold around late 2009 then started to rent). Did the illusory wealth created during the US leveraging from 2001-2007 help everyone? Maybe for a bit, but the consequences were far worse for everyone.
A controlled inflationary deleveraging is very very hard to achieve. Even if you could, to put the brakes on at the end, you would need to really crank up interest rates, which I know you debtors love. But then by that point, avg wages will be 500k a year, a bottle of water will cost 50 bucks, but that's ok, cause all those misguided debt slaves will have been set free.
Talking to you makes me want to convert to the Austrian School of Economics, and go back to a gold standard.
