Debt is the root of all evil.
In days gone by, debt was used as a short term stop gap when there was a timing delay between receipts and payments. It was also used to help pay for investment programmes that would provide employment and wealth to a country.
Debt to pay debt is not the way forward as we have seen with Greece, Spain et al (well done for booting out the socialists who just love debt ...and for those who are fighting against capitalism, look at China who has grown so big and strong by abandoning socialism).
The UK government has seen a correlation between house wealth and perceived happiness and growth. So it wants to underwrite mortgages for first time buyers. (cityam)
OK. The problem is there are too many people in the UK and not enough land to house them all. Possible solutions are:
1. Cull the people (war? plague? free beer?)
2. Ban childbirth for 5 years
3. 1 room for 2 people
4. Make it very expensive for single people to live alone
5. Invade another country (like Australia) and export the uneconomic people
6. Free condoms and the banning of the Roman Catholic church
7. Encourage homosexuality
8. Ban children from going outside until they are 18
9. Subsidise bunk beds
10. Turn Hyde Park into a huge tent city
11. 3% year tax on properties which have pink wallpaper
Note how debt wasn't mentioned once?
More debt means more market distortions means inequality means more mess.
But that is dull.
What isn't dull is the rise of fascism in Europe because of these "more debt, more greed, more grab and take and not give back" policies. (economist)
People power is all the rage (Egypt, Occupy, Greece, etc) and the people need to be pacified. Opium, Coke, bling, X Factor all help but debt doesn't. It is a quick hit and then like cancer you spend years in pain being cured.
Solution. No more debt.
Spain. Honeymoon almost over (bloomberg)
Coke and BigMac help boost diabetes drugs in China (bloomberg)
Obama fails to understand why debt is a bad thing (reuters)
EU to ban cash and replace with debt.