Economic Growth and China's Tightened Credit Conditions.

I sent a letter to the Chinese Ambassador to the UK along with a book to support China through the currently experienced tightened credit conditions. The letter is linked below.

http://morganisteconomics.blogspot.com/2019/08/letter-to-chinese-ambassador-to-uk.html

 

so what is the main point of your book? do you mean state-controlled capitalism is better?

 

The book puts forward new techniques to enable growth. I have put the blurb below.

This booklet contains a series of articles putting forward original suggestions of how to achieve economic growth in a constrained environment. Economic growth is becoming the most viable method of resolving national debt issues.

The existing methods of reducing the rising private and public sector debts have become limited as a result of market forces and political pressure. Outgrowing debt is favourable compared to cuts in consumption and government spending.

New techniques to enable economic growth are provided including Governmental Commerce, Internationally Commercialised Innovation, Taxation Efficiencies, Supplementary Income and alterations in Pension Saving Allowances.

The booklet offers a fresh approach to macroeconomic policy, which will help to stimulate growth and enable new business operations. The new economic tools devised will give politicians alternative options to avoid implementing hard policies.

You can get a copy from the link below.

http://morganisteconomics.blogspot.com/p/blog-page.html

 

Fed is already doing this: Target a 2%-3% inflation.

 

There is a limit to how much the interest rate can be lowered.

 

you are talking about "productivity", whether you realize it or not. The money in circulation and readily expendable can be expanded or contracted in relation to productivity. When it is expanded or contracted far out of step with productivity there will eventually be undesirable consequences.

Commonly, excess money is absorbed by sovereign bonds. As such these bonds represent potential, latent inflation. The servicing of bonds represents expansion of the immediate money supply to the extent it itself is not rolled into bonds.

The first order affect on money supply is credit; not routine C.B. policy that has only a weak second order effect on money supply.

I agree that "outgrowing debt is favourable compared to cuts in consumption and government spending."

A practical problem arises for Central Banks. Their policies can only have second order affects on productivity. It is only legislative bodies, ie., parliaments, etc., that can have first order effects.

 

Are you sure? Here the bank pays you 0.5% a year to loan money to you.

https://www.cnbc.com/2019/08/12/dan...r-mortgages-with-negative-interest-rates.html

 

Tell this to Europe