… then none of this bad business need ever happen. The economy works better in recession than it does in boom if it is allowed to. Since the recession is the cure for the boom.
Having said that Barry Soetoro isn’t going to wake up tommorrow and call up Bernanke and each of them talk about the same dream they had where this all became clear. For this reason we can expect a societal collapse in the States and we certainly need to keep our heads here in Australia.
The massive oversupply of retail space, commercial real estate space and so forth could be a great resource. It could lead to fantastic reductions in rentals and therefore in living costs. But this implies almost universal bankruptcies. Which these Washington criminals aren’t going to let happen.
Also consider this. The way to end financial sector subsidies, without bank runs, is to retire debt with new cash but to not allow the banks to pyramid on this new cash. Under that policy there need not be bank runs. However all the banks currently in business would have to wind up. Wind up in a civilised way but wind up nonetheless.
BUT THAT WOULD BE GREAT. Because their winding up would also wind up their debts and with their debts would go most of our national debt. From there new bankers will come out of the ground and under 100% backing we would have a system more or less totally devoted to producing new wealth.
So the difference between what COULD happen, with good policy, and what is likely to happen, has never been greater. We cannot rely on the Americans any more. Can we learn to look after ourselves?