Zimbabwe Economics

Source: Lew Rockwell.com

by Bill Bonner

"Haven’t they learned anything?"

Learning comes at a price. When markets are rising, nobody learns anything. It’s when they go wrong that people put on their thinking caps and take instruction..."

"If we had been running our economies the old-fashioned way, for example, where saving and consumption were funded by income, maybe we wouldn’t be in this mess we are in now."

Roach went on to say that this mess "will dwarf the dotcom slump."

"Naturally, Mr. Roach’s words didn’t seem to lift the mood at Davos. And the news coming out of the U.S. economy does little to lift American consumers’ moods either.

A word to the wise: you can’t really make people wealthy by resorting to "Zimbabwe economics." A society grows rich by producing things...and saving money. There is no other way. Cheaper credit won’t do it. More consumption won’t help. Printing money – and dumping it from helicopters – is a losing proposition."