Monday, July 18, 2011

The Daily Snark 7/18

The crisis of our time seems to be described with the word "unsustainable" quite a bit. Like today, about Italy should Greece go under. And that unsustainable always seems to be tied to another economic idea: debt.

Hmm, is it possible that the problem of our time is "unsustainable debt?" Could it be that we have borrowed against our future too much and that the "future" where we pay has finally arrived? I think some people got the idea in their heads that we can just borrow forever. The Austrian school of economics has their own peculiar theory on debt, and I tend to believe it is right. Deflation and a reduction in loans would suck in the short term, but so is using a fire hose on your living room. It is still preferable to letting the whole damn thing burn down.

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