'Pulling #consumption forward' is an unhelpful euphemism for 'engaging in #capital consumption': more graphically, 'writing cheques the people can't cash'.
Self-sustaining #growth requires coherence between consumption & production not just today, but over time.
1/x #centralbanks
That latter is difficult enough to achieve without #centralbankers & policy-makers in general trying to impose their own vision of the balance (one always narrowly biased to the present) on a system composed of billions of interacting needs & preferences.
2/x
#bankofenfgland
The unavoidable (Rumsfeldian) uncertainty -as well as the calculable risks- is made much greater when every fluctuation today -itself a direct result of IN-coherence, largely inflicted from above- is greeted with yet another blunt-force trauma assault on the capital structure
3/x
Every downward lurch is a spontaneous attempt to expunge the unprofitable, the wasteful, the outdated or misguided. Every official attempt to forestall that merely transfers resources from the strong to the weak & attempts to suspend the #market's evolution; to frustrate...
4/x
...its unceasing, inner drive to maximise resource usage and to adapt to the very changes in people's preferences (as well as in their productive potential) that its own action inevitably brings about. The hot-house replaces the meadow; weeds choke the harvest.
5/x
#Fed
If you persist in trying to prevent people from laying down prudential reserves and so placing means at the disposal of genuine entrepreneurs while simultaneously signalling their desire to defer enjoyment into that future when the latter's plans have come to fruition...
6/x #ECB
The savers find they have no resources on which to draw: the real #entrepreneurs find those plans in disarray, their market shrunken & what demand there is diluted by the Con-trepreneurs who have built shaky, speculative empires on fickle fictional #capital, not real savings.
7/x
In short: there will come a day when all of Tomorrow is found to have already been 'brought forward' just as the clock strikes midnight!
8/x
#macro
#ABCT
#AustrianSchool
@CantillonCH
@threadreaderapp unroll
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