Jaguar Inflation

Here is a great article entitled Jaguar Inflation by Robert Prechter, Jr.   He makes an interesting analogy where he asks what would happen if the government decided that it was a necessity for everyone to own a Jaguar (car)?  He then compares this to what really happened when the government decided that everybody should have credit.  It makes  a lot of sense.   To quote the final paragraph of his article:

Would lesser availability of consumer credit mean that fewer people would own a house or a car? Quite the opposite. Only the timeline would be different. Initially it would take a few years longer for the same number of people to save enough to own houses and cars — actually own them, not rent them from banks. Prices would be lower because credit would not be competing with money to bid up these goods. And, because banks would not be appropriating so much of people's labor and wealth, the economy as a whole would grow much faster. Eventually, the extent of home and car ownership — actual ownership — would eclipse that in an easy-credit society. Moreover, people would keep their homes and cars because banks would not be foreclosing on them. As a bonus, there would be no devastating across-the-board collapse of the banking system, which, as history has repeatedly demonstrated, is inevitable under a system of central banking and other government-created credit factories.