Financial Recurrent Disease: When The Liquidity Solvency And Competency Disguise..(II)
In summary the German finance minister has accused the Fed chairman as one of America diagnose infectious diseases suffered by Americans. Their disease is in fact due to living in the insolvency of the debt that is too long, their disease also exist in in-competency in small and middle industries and is unable to compete with Chinese products. They have no problem with liquidity - because the dollar is too much money is printed as the first effects of quantitative easing around two years ago.
So the spraying of U.S. $ 600 billion in quantitative easing - 2 which was decided only a few days before G-20 summit of the above are toxic drugs that cause side effects unusual (in the form of high inflation and trigger the next crisis), whereas given these drugs can only treat the symptom or symptoms of liquidity - but did not address the real disease of insolvency and in-competency.
Three problems 'disease' is that in solvency, in-il c ompetency and liquidity does have the same symptoms ie the availability of money or cash. Back at the family's example above, if our families do not have sufficient competency - then it might result in our income is not sufficient to pay expenses and repay debts (insolvency), his symptoms are more often we will not have enough money or illiquidity. But it could have all of a sudden we have a lot to owe money (again) for example, then this illiquidity problem before - but it certainly does not cure the disease that is more fundamental insolvency (because of fixed debt must eventually be paid as well), all the more indebted clear will not cure the problem incompetency.
During our money easily in print from the clouds - then the liquidity in the national and global scale arising from the bills - there is no guarantee can solve problems more fundamental problems such as insolvency and in-competency - because money printed from blank paper and not as a result of the work - but the result of debt such as family cases that add to cash by borrowing mentioned above. Even the liquidity of this bill will tend to disguise or menyarukan more fundamental problems such as insolvency and in-competency.
So who is still feeling the effects of this disease really? Yes all of us who have the money but it was this low purchasing power. Although a lot of our exports exceed imports so that the balance of trade surplus and foreign exchange we enlarged, but when measured by the real purchasing power, the average population of this country further away from a standard poverty line with the standard poverty threshold that is essential until the end of time nishab charity .
Well now we know there is a highly contagious disease and it turns out the 'doctors' world-class can misdiagnose the disease - do not we move away from the sources of the disease will be better for us?, Especially when while away from sources of disease are we too are able to build 'endurance' of competency and solvency are then also automatically solve the problem illiquidity.
May Allah facilitate steps all of us to distinguish the right-that's right then we follow it, and falsehood - that's vanity so that we can away from it. Amen.