dr oliver's 5 point plan debt crisis solution

Things are going to get worse people. Economists still do not understand that the whole problem is because of high debt. Their solution add more debt onto the existing debt.

Here is Shane Oliver's 5 point plan in the SMH:

"Dr Oliver has a five-point plan:

■ Quantitative easing - QE3 - from the US Federal Reserve, possibly in November.

■ A major increase in the size of the European bailout fund - a vote on expanding the $440 billion European Financial Stability Facility goes before the German Parliament on Thursday.

■ Aggressive bond buying by the ECB of Greece, Portugal, Italy, Ireland and Spain.

■ ECB to cut lending rates from current 1.5 per cent to near zero.

■ Interest rate cuts in Asia and Australia before Christmas."

Can someone please explain to me how someone who has such a strong economic background seems to not understand that the problem we currently have is a debt problem?

How will QE3 fix the problems when QE1 & QE2 did nothing but prop up the market?

How bailing out troubled eurozone members will increase growth when the money supply has to be expanded and inflation will follow?

How buying your own bonds will somehow solve the problem?

How cutting interest rates will create REAL GROWTH and not increase speculation in assets?


The real solution is for economists to be stripped of their degrees and qualifications and let the market find its own bottom and let the bad debts get liquidated, increase the value of money so people can save and then spend not go into debt to spend money they do not have.

This is the problem Dr Oliver.


How can you solve a debt crisis with more debt?

Its the debt stupid.



Read more:

Read more: http://www.smh.com.au/business/buckle-up-for-apocalypse-dow-20110924-1kqsq.html#ixzz1YubDXQLo