John Lee Response To Stiglitz

For any economic problem, it’s interesting how Keynesian economists always find the greedy bankers guilty, the public innocent, and the government responsible for prevention AND a cure through regulation.

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Government actions often times have good intentions but with unintended consequences. Should the government be more proactive in lowering interest rates and early bailouts as Mr. Stiglitz suggests, this would amount to loosening monetary policies, or to put it more bluntly, money printing, which is a stealth wealth transfer by diluting savings of others.

Those who study the history of money understand the cause of the debt bubble is composed of two factors: The centralized interest rate model and the fractional reserve system.