The end of thrift in Britain

We are now in the bizarre situation that I will pay money to the banks for looking after my cash as a deflationary psychology takes hold. Say something long enough and people believe it. Yet prices have not truly started to fall, as yet, except for the pricking of asset bubbles. Indeed, the outcome of quantitative easing may not be deflation, as lots of economists reference Japan, but inflation. These actions are designed to save credit and maintain demand, a fool's errand since demand cannot be conjured.

Our wizards believe that the velocity of money is a perpetual motion machine and that easing the cost will continue to maintain the model they are familiar with. Not all deflations are depressions, and like all phase changes, there are winners and losers. Yet, as we have seen, the government has already decided that the prudent and the farsighted will pay at the expense of the indebted and the indolent. With their final spreading of moral hazard as the manure of the economy, these idiots will have to learn that the enemy of thrift must be rejected.

No government is too large to fail, and when they do, they begin by canniballsing from their citizens before they finally eat themselves, pace Zimbabwe.