[ronigafni]

Wow, that was incredible and really cleared a lot of things up. One follow up though… You wrote “By saving and investing more, they give entrepreneurs command over more resources to make the transition and less liquidation overall will need to be done if time preferences stay lower. ”
This would also seem to reveal another great evil of debt/deficit spending on the part of the Federal Government. By crowding out credit for entrepreneurs (since they need to borrow that money for themselves) and forcing a greater amount of necessary liquidation that can only be solved (in the ruling classes mind) by printing more money for them (thereby further distorting the market). Is that about right?