Sunday, May 06, 2007
Debt and baby boomers timb bomb
austrianenginomics.com: Why is Economic Depression Imminent?
Debt is one of the most misunderstood macro economic measures of all. Most
economists, financial analysts, the mainstream press, and politicians believe
extraordinary debt expansion is tolerable as long as the economy stays “strong and
growing”. This could not be further from the truth. In principle, if on average one cannot
owe more than one can produce in his lifetime, then most people may intuitively deduct
this one-sided American consumption binge cannot last. Those holding these debt
securities worldwide enabling this consumption binge are experiencing the most
extraordinary illusion of wealth. Soon they will discover that illusion. They will not
recover their principal in real terms, let alone interest!
Posted by sold 2 rent 1 @ 12:16 PM (178 views) Add Comment
1 Comment
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1. Phcahill said...
One can owe more than one can produce if our youth pay our debts. HPI means the old stealing from the young.