What I’m looking at now is this whole world economic situation. The powers that be would have you believe that we are in a nascent recovery and it’s going to gain strength. I believe there will be no recovery of any magnitude in the world economy for the simple reason that there is far too much debt. One of the most important tenets of Austrian economics, of which I am a true believer, is that it takes more and more credit creation to generate a real increase in GDP as you get deeper into an economic cycle, and we are extremely deep into this cycle.
The amount of credit creation that is required to get growth at this point, it can’t even be supported. We can’t even support the debt load that we have now, let alone massive new quantities of debt. So the idea that we are going to have a self-sustaining recovery is just fantasy.
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