So basically, governments across the world are injecting money into their economies and lowering interest rates to counter the current economic slowdown. I figure lowering interest rates lowers WACC and makes a lot of hitherto unprofitable projects, NPV positive which in turn help to drive economic growth. Lekin, but, parantu, they are only NPV positive when the expected return is seen as a premium on the risk-free rate which is not inflation adjusted. The government is also 'injecting money' (god knows into what), but that is obviously going to increase inflation, no? So in real terms, there may be no incentive to start new projects, depending on how much inflation rises, right? This whole macroeconomic situation is evidently beyond my grasp. Saala people want to work, they want to trade, but somehow, still the economy is forced to slow down and come to a stand-still. What is the opposing force that is causing all this? The fact that people are not getting the right price for their goods/services is not because demand has deteriorated across the board. It is only because demand was articially inflated for certain goods/services (bubbles - mortgages, interwebs), is now suffering a correction and prices of other googs/services (parapraxis?) dependent or related, are following them in their downfall. Many people acquired insane amounts of wealth during the bubbles and have exited with their cash. So the force driving the economy down is not that people have suddenly gotten lazy, it's that these sophisticated conmen (aka bastard-sons-of-bitches) won't let their wealth redistribute. This anti-redistributive force is what is driving the economy down. Large packets of wealth are stuck in their bank accounts. They sold people something that wasn't worth its price and got away with it. Nothing the governments do, other than forcing that wealth to go back to where it belongs, will ever stop the depression.
What can we do as individuals?
1. Startups - create employment, create wealth. Somebody, please. Of course this is only for those who have the nerve, the know-how, the will.
2. Charity - actively seek out those affected by the depression and share your wealth with them. (In fact I have been exercising Robin Hoodism myself, by stealing from the wealthy corporations and putting the money in my bank account.)
3. Forced Correction - stop buying houses you can't afford, stop clicking on stupid online ads for stuff you're not going to buy anyway, stop using so much gas - force the prices to bottom as quickly as possible. (This one I'm not sure about at all actually - I mean, shopping online does save gas right? And how do we know how much of a correction is enough?)
4. Stop revealing your ignorance on your blog and do some productive work.
