One of the standard doctrines of mainstream economics is that the assumptions of a model do not have to reflect reality. Austrian economics vociferously disagrees.
Einstein might have been one of history's most brilliant men, but even his great mind could not have made socialism work. Unfortunately, he wasn't smart enough to see that.
The world is changing, and in the coming five years we'll see how accelerating debt, declining demand for dollars, and rising price inflation will show how deficits do matter, after all.
A century ago, Argentina was one of the world's wealthiest nations and the Argentine peso rivaled the dollar. Today, Argentina is famous for periodic hyperinflation.
The combination of higher rates and declining optimism about the economy, plus slumps in equity, private investments, and bond valuations, is going to inevitably lead to a massive crunch in access to credit and financing.
A bedrock of Austrian economics and libertarianism has been free trade. Unfortunately, some people who claim to value liberty no longer value unhampered exchange.
The current banking crises have deep roots in US financial history. Monetary authorities have engaged in inflationary behavior for more than a hundred years.
