Self Esteem

The Western economy is suffering from sever self esteem issues, it's really important for us to take steps to address the problem. It needs to look itself in the mirror and repeat the words "I am not fat on debt. I am not consuming too much. In fact, I need to consume more and more!" If we don't improve the economy's self esteem, there is a chance it may sink into a depression and take drugs and have unprotected sex with other economies and die in childbirth while other little economies are born.

This is pretty much what all Western governments and central banks are thinking right now, but really it's bullshit. The economy is too fat. We need to go on diet, and get some exercise producing more than we consume. The economy feels bad, because it's a hideous mess, but our paternalistic big-brother's are telling us it's still beautiful and feeding us more doughnuts. We have waning car industries in Australia and the US, not because of a lack of credit, but because the cars suck ass and they're hemorrhaging cash on overpaid Union Workers and dumb executives. We can't bail them out no matter how much free money we hurl at them, because their costs are going to increase through inflation faster than Kevy-o-sevy can say "This is for working families."
Sadly, bailouts on in all countries, are going to hit those very families harder than just letting a broken system flush away. It's quite simple. More money is injected into the upper echelons of bad businesses, now whether or not these businesses get back on their feet is irrelevant, because that money otherwise would not be in circulation, therefore the money has been inflated and has less value. Which in layman's terms means that things will cost more, so by the time that money filters down to you and me the benefits have been largely negated. That's the best case scenario too.