- There is no means of avoiding the final collapse of a boom brought about by credit (debt) expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit (debt) expansion, or later as a final and total catastrophe of the currency system involved.
– Ludwig von Mises
- You cannot convince me that the world is A-OK. Everything will resolve itself in a happy manner. It is nonsensical. The world is overburdened by an insurmountable mountain of debt. Most economic commentators talk only about official government debt and not the unfunded liabilities. According to some the liability of the US government using GAAP exceeds US$200T. There is no way these liabilities will be met. The world is heading towards a ginormous debt collapse!
- Unfunded liabilities are things like: Social security, Medicare, Medicaid …etc. The US government has spent all monies collected under social security since after WW2. Those retiring or in retirement are getting their monies out of those who are workig and contributing to social security. It is a Ponzi scheme. In the past, the contribution to social security exceeded the withdrawals because the baby boom generation was still working (not retired). Now that the baby boom generation (ie. born after WW2) is approaching retirement ie. 62 and above, withdrawals will be greater than contribution. Where are all these monies going to come from?