I do blame the Fed because they are printing money out of thin air to buy treasuries which they purchase via the banks, the banks in turn make a healthy profit off this trade. Importantly the Fed is not Federal at all but is actually owned by the banks themselves. So in essence the private banks and the Fed are encouraging spending because it increases the profits for the banking sector.
If the Central bank and it's magical printing press didn't exist the US would be forced to reign in it's spending. This is not a chicken and egg scenario, the Fed brought about the end of traditional banking, encouraged leverage and fractional reserve lending. In the past the US was always able to balance it's books until the likes of Greenspan and Bernanke came along. In this regard, it is fairly obvious to me that this rash spending spree didn't happen without some support from both the Fed and the Treasury, the latter of which is headed up by none other than Matt Zames a JPMorgan banker, as the yanks say, Go Figure!
Spending does not help ordinary people, as you've said yourself future generations will have to pay and by not taking action now the inevitable crash will be much harder and more disastrous than if we took the medicine immediately.
What needs to happen is the complete opposite of what you have said. Firstly interest rates need to rise, it encourages saving as opposed to gambling and spending both of which created the mess we're in now. The only beneficiaries of low interest rates are Investment banks and Governments. Investment banks borrow money for nothing, which encourages extreme leverage and gambling activity, this leads to a reluctance to lend money to people on the street for mortgages. They earn more money from creating immoral and fraudulent derivatives than doing what they're supposed to be doing as traditional banks.
You mentioned that the resulting crash would have been more severe had the Fed not stepped in, I beg to differ. What you are seeing right now is a full blown depression, unemployment in the US is more like 22%, the official figures are bogus. People are mistaking the strength of the stock market for a sign of recovery, this is evidently not true, the number of people on food stamps in the US has grown exponationally! The only difference between this depression and the last one is that there are no food queues, they are now in the form of food stamps! If we had done the right thing by punishing the banking sector and written off the bad debt we would of had a short sharp recession followed by a boom. If you have any doubt on this just look at what happened in Iceland, they did all this and are now flourishing, an example for all right-minded people who care to notice.
By advocating more of the same failed monetary policy such as rampant spending, Quantitive easing and low interest rates the US and the rest of the Global economy will limp along in zombie like fashion. Spending will keep on increasing, inflation will skyrocket, jobs will hemorrhage, banker fraud and corruption will thrive even more and illegal wars of an Imperialistic nature will continue to be fought. By doing what is right such as increasing interest rates, reinstalling a spirit of capitalism by letting corrupt institutions fail and not rewarding fraud and crime; we are more likely to see a return to solid growth and an environment more in favour of enterprise and entrepreneurship, not to mention a realistic value for HK property! If you get the time I suggest you might want to read this below.
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