World not ready for the end of Stimulus, NOT!

Any adjustment here and there in any facet the WORLD's financial system will inevitably cause a domino effect. That is precisely why the Japanese government is so afraid of the rising strength of their currency. If the yen rises tremendously, and the US dollar remains stagnant, it will be extremely taxing for the US to import goods from Japan, any smartass will know that they should import from countries with a weaker currencies that theirs unless they are left with no choice.




We have been on this issue of when to remove the credits and the stimulus for quite some time already.

But, I'm afraid that this situation will leads to an effect called the "Escalation of Commitment" which necessarily means that people just pool in more and more money relentlessly, and in turn, overlooking the subtle negative implications. Basically, the nature of Man is that we rather take a risk than to lose it altogether. In layman terms, we rather continue paying for a house than to foreclose it. The government is afraid that when they remove the stimulus, the entire economy will collapse for sure, so why not we drag this stimulus and gamble for an economic recovery?

Well, while this might be true, the thing about the dragging of this stimulus package is that people become more and more reliant on it. To put forth an analogy, imagine you have just been stabbed in the chest by a knife, if you take it out immediately, it is going to hurt big time and it might even kill you but there is still a high chance of survival. Conversely, if you leave the knife there and wait for the pain to subside, veins, tendons and muscles will start conglomerating around the knife in the body and twine around the knife. Till then, when you finally decide to take it out, it is similar to extracting a part of your body and you will die.


Even those who have not been dependent on it has now started to lean against it because it is just there, it's so convenient so why not exploit it like everyone else? And if the package is there for a longer time, it abets people to sink into this kind of mindset and more & more people start to join in the fun until there is no turning back anymore.



Till then, a radical approach will be needed, to erase all these people off the stimulus pillar, get rid of all of them once and for all, synonymous to oblieration and this can result in damaging repercussions.



All in all, I feel that the government has to stop this stimulus package soon or people will start taking it for granted because they know that the government will continue dragging it for the sake of them. Hence, they will never stand up on their own feet to start working for their own future.
 
Credits -geekologie, -faqs, -wiideath