Monday, March 30, 2009
A timely warning
Be responsible. Rebuild your balance sheet and pay off as much debt as you can. Be a sucker. Because when we look into the past, we can see how they're going to get out of this mess in the future. They're going to increase public debt massively, then they'll print money to service it and use inflation to run the debt down. So what we want is enormous debts ourselves that inflation will degrade over the next decade. That's how Alistair Darling is recommending we do it. True, he isn't putting it quite in those terms, but his meaning is perfectly clear to those of a sceptical bent.