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The other reason for so much FUD is that the modern economy is entirely based on debt -- personal, corporate, and (especially) government. Therefore central ban
by jayess 12y ago
The other reason for so much FUD is that the modern economy is entirely based on debt -- personal, corporate, and (especially) government. Therefore central banks needs to keep the bubble growing perpetually so that the debt can be serviced. But it can't continue forever...
- dublinben 12y ago>But it can't continue forever... Why not? Malthusian predictions have proven to be wrong so far.
- jayess 12y agoPast performance does not guarantee future results :)
- jbooth 12y agoNeither do bald assertions with a smiley face. We've been supposed to see hyper-inflation Any Day Now since like 2009. I'm sure it's just around the corner.
- elwin 12y agoHistorically, debt neither increases forever nor collapses catastrophically. Individual sectors collapse, and new ones develop. In the early modern period, governments would simply refuse to repay their debts. Nowadays we have things like stock market crashes and mortgage crises.
- debacle 12y agoWe'll really be able to find out in the next 20 years. If it can survive the retirement of the boomer generation and the stagnation of China's economy, it will prove itself as almost entirely durable.
- dublinben 12y agoI think the true test of this system comes sometime in the next century when human population peaks. Expansionist policies assume growth (growing population) and don't handle shrinking or stable populations well.