Machjo Posted December 17, 2009 Report Posted December 17, 2009 http://www.cbc.ca/money/story/2009/12/17/td-calls-recession-over.html This past recession caught us by surprise, with no anti-deflation plan in the works. With no anti-deflation plan in the works, instead of planning for the upcoming inflation, we were just focussed on scrapping up some kind of ad-hock spending spree as a knee-jerk reaction. Now that the recession is officially over, with no plan for the upcoming inflation, we'll likely reach out for some ad hock knee-jerk reaction yet again, with no regard for the next recession. A few months ago, when we were experiencing deflation, many were mocking warnings on this forum about future inflation, as if it would never come again. Now that I'm bringing up the next deflationary recession, I'm sure the same people will now mock the idea saying we now need to focus on the inflation now beginning to rise. Should we not always be one step ahead of the game? One way I could see us preparing for the next recession and fight the rising inflation at the same time could be to either raise taxes, reduce government spending, or some combination of the two, while at the same time passing into legislation a plan for the next recession, that would take effect as soon as certain criteria are met. For example, we might say that any new government programmes to be passed into law are to take effect only when the government debt is paid off, inflation falls below 0%, and the Bank rate falls to 0%. This way, these programmes would not be adding more money into the economy now when we're likely to experience an overheated economy in the next few years. Instead, right now, we'd be focussing on paying off government debt to ensure a strong foundation for the next recession. Then when the next recession comes along, we'd have not only a plan of action, but a clear definition of when it's to take effect. Other things that could be included in this would be purchases for government departments. For example, for now we buy new police cars, fire trucks, ambulances, Catscan machines, military clothing, etc. only when needed. Come next recession, when the criteria mentioned above are met, then we could purchase all the police cars, ambulances, fire trucks, etc. that these various departments may foresee a need for for. Then would be a good time to stock up. Or would we rather just keep repeating the same mistakes again and again and again? Now would be a good time to start planning for the next recession, even if it doesn't appear for another decade or two. Quote With friends like Zionists, what Jew needs enemies? With friends like Islamists, what Muslim needs enemies?
Machjo Posted December 17, 2009 Author Report Posted December 17, 2009 The same could apply to walking and bicicle paths, public transportation infrastructure, etc. Now that we're out of recession, and that inflation is coming on already, now is not the time to add more such projects. But now would be an excellent time to plan such projects so that, come next recession, they could be implemented quickly. Now would not be a good time to implement such projects though other than the ones that are already started of course. Quote With friends like Zionists, what Jew needs enemies? With friends like Islamists, what Muslim needs enemies?
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