I am not sure if this is the best thread to talk about this theme? And it is not my intention to cause offence. I do care about the planet and would like to see a sustainable future. I did not join this forum last july to cause trouble. I joined because i am interested in what is happening today and how that is going to influence our futures.
Governments dont need to borrow from 'an entity' to spend now. They can "borrow from the future" to spend now.
Because they can create inflation they can force prices to rise and enable their borrowings taken from the future to be repaid by money that is taken from the present and returned to the past - which is then in turn a deflationary process. But the inflationary process also reduces the value of existing debts that are held in fixed 'prices' while the value of money is reduced.
Obviously this does not favour those who save only and obviously it tends to favour the prudent debtors and savers who buy assetts protected from inflation while having even so savings for a rainy day and opportunities.
So there are differences between individuals and governments.
A government can devalue debt by introducing an excessive amount of money into the economy.
Debt is now the problem for many people. So Government spending makes sense from that point of view.
The issue in the future is then if you intend behaving prudently like modern Germany has said it will do or if you behave like say Zimbabwe or Argentina etc.
In a temporary situation for example where Eastern countries have saved and western countries have not saved then if economies are otherwise sound (given that we dont live in a perfect world) western countries can now borrow from the future while Eastern countries can spend the saved western money in a way that could go some way to making our future a bit better. If the savers save less while the spenders are unable to spend so much there could be a balancing effect of sorts.
If you save in a mattress your money is not spent by somebody else, but if you save in a bank for profit your money is being spent by somebody else. Saving is a way for you to spend less and for them to spend more from that point of view.
Obviously if you are a government and there is a recession you want savers to spend their money also, because the government does not need savers to be able to spend itself.
Because we are now in a recession, prudence will now be punished. That is a sort of fact of life i think.
But the question remaining is when will it be prudent to move from being a saver to being an investor?
Another point about the future is that you cannot know the future. You know the future when it is the present when it is no longer the future. So if you want to talk about knowing what the future holds you are moving into faith based ways of analysing todays situation.
Personally I have faith that things will work out ok somehow. And i know it does not make me very popular. Even so my faith is reasonably well grounded in my life experiences and i guess i am wanting others to also ground their faith in data and trends and observations before they only use their faith that they know the future better than i do.
Anyway at this point in time my observation is that a government is different to an individual because the goverment *can* create the future via its actions in a way that an individual cannot do when it acts alone.