Proposed: Global Inflation as Financial Cure
People desperately need money now. So give them money.
If any one nation does this by itself, its currency will become worthless. If you print endless amounts of dollars and give them to all American citizens, you help them wipe out their debt, but it will take a stack of dollars to buy a single Euro.
But if all nations (or possibly just all major nations) do it in concert, there won’t be much else that people could exchange their worthless currencies for. The price of gold and other commodities will skyrocket, because there will be still be people who will be able to afford to buy an ounce here and there. People may still not be any more able to afford food. But the credit crunch will end, because people will have the money they need.
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Tags: credit crunch, crisis, financial system, global inflation, money