Jane: Putting out the fire with gasoline

PUTTING OUT THE FIRE WITH GASOLINE

Darwin Group's David Jane argues policymakers have no hope of rescuing the global economy by borrowing their way out of debt.

Policymakers still seem to believe the self-serving advice they are getting from the bankers that the way to solve the debt crisis is to borrow ever more money. The occasional individual has in the past experienced this in their personal finances - in order to pay their mortgage they borrow on their credit card and get further and further into debt. This is obviously not a solution to an individual’s debt problem, nor can it be for a country’s. Yet policymakers still seem to think that throwing ever more debt at the economy is going to solve the problem, despite all the evidence to co...