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This is one of the tenant of Laissez Faire. They want to leave it to the Market to adjust price. But precisely a Liquidity Trap occurs when there is a break down of the Market. The rate of Offered savings is, at any quantity higher than the return of investments. No Market! How could...

In order to emit money a Capitalist economy Central Banks make credit to banks with the hope that it will finance long-term investments and trickle down to the ordinary people. Because Income / Wealth disparities increase long-term interest rates keep going down hence the value of long-term...

You are right Libertad, when the economy get in a Liquidity Trap no one can repay their Credit. Not only the Credit Market is a Ponzi Scheme but also any Market for long-term assets. Stocks, Businesses, Real Estate... You are right in saying that vested interest will prevent politicians...

What you can do is participate in our Credit Free, Free Market Economy, which will be launched as soon as the number of our registered share holders reaches 123,456,789. Check it out at 1776 - Annuit Cœptis Don't lose hope! "Even apart from the instability due to speculation, there is...

Sorry, Chairman Ben S. Bernanke, But Quantitative Easing Won't Work. In a Liquidity Trap although Saving (S) is abnormally high investment (I) is next to 0. Hence, the Keynesian paradigm I = S is not verified. The purpose of Quantitative Easing being to lower the yield on long-term...