No one is arguing that the present interventions by government are not giving the impression of prosperity; we agree that injecting new money creates economic activity. However, these measures create only an illusion which cannot last and which succeeds only in postponing and worsening the unavoidable crash. Society can ill-afford that outcome.
We all want to believe that our economic prospects are about to improve, but why are we listening to the same commentators and economists who failed to predict the crisis and who have not identified its ultimate cause?
If we are to extricate ourselves from the mess we are in, which will continue to develop next year, policy makers need to turn to the school of economic thinking which predicted the Great Depression, the Dot-Com Boom and this Credit Crunch and which can present an expedient route to sustainable real prosperity. This is the Austrian School of Mises, Hayek and many others.
A primer may be found here.