I want to show the following chart, a recent, but not up to the minute version of the data, which shows the growth of the debt in the last century. I like this format because the linear vertical scale clearly shows - with a minor hitch - exponential growth, and that's the fundamental problem (source is from January):
As I said last night, with a congress unwilling to make even 3% cuts in spending, this does not end well. But it does end - it has to - and probably fairly soon: it ends in months, not years. Infinity is a handy concept in math but not a good basis for economic policy.
There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency involved. - Ludwig von MisesOh - that's right. An anonymous Keynesian commenter in October said that Austrian economics can't make predictions. Everything is fine. Just keep on with life. No need to store food or any of those fruitcake ideas you read about. You can trust our insect overlords to fix everything.