No, the bill can't be paid and won't be paid. That much should be obvious. But denying the obvious is a mental trait built into the structure of the system. The economic crisis of 2008 was really just the realization that the consumer-debt load at the time was unsustainable.
Here we see the huge gulf between Austrian and Keynesian analysis.
Ron Paul recently made (another) splash among economic pundits with his suggestion that the Treasury simply cancel the $1.6 trillion in its debt.
This great company keeps reinventing itself to serve the public: real people, not abstractions, writes Jeffrey A. Tucker.
While you may see those who walk away from underwater mortgages as morally wrong for breaking their mortgage vows, others see those who stay for the financial beating as stupid. No matter. As prices continue to fall, millions more will make a run for it.
In the standard Austrian theory of the business cycle, the question is not "How do we get out of a recession?" Rather, the question is "How do we avoid the boom?" According to the Mises-Hayek theory, the preceding boom makes the corrective bust <i>inevitable</i>.
The Mises Circle in Indianapolis. Sponsored by Weaver Popcorn Company. Recorded 14 May 2011.
