Discouraging Savings

There's a place where the lights won't find you
Holding hands while the walls come tumbling down
When they do
I'll be right behind you
--Tears for Fears

Over the past couple of months, I have been swapping cash for 'non-paper' assets and even some consumables. Given the current macro environment, I don't want to put away dollars here.

Stated differently, the current policy regime discourages me from saving. Instead, I am motivated to convert what could be capital for investment into forms that preserve value or promote enjoyment of dollars at current prices.

This is a not a productive situation.

Durable recovery requires savings and capital accumulation. Current policies are doing the opposite. They are motivating more borrowing and spending.

Instead of capital formation, we are getting capital consumption.

There are few more foolish policies than those that discourage savings.