Austrian Economics teaches that credit leads to economic booms and that all economic booms bust.
Prominent Austrian economists today warn that the United States has been experiencing a growing economic bubble for decades. And they prescribe Austerity as the only policy capable of returning the economy to a state of economic equilibrium.
What they don’t tell you – and are afraid for you to find out – is that the return to economic equilibrium would involve an economic collapse far worse than the Great Depression.
The US economy is built on $100 trillion of Credit. The consequences of the implosion of our $100 trillion Credit Bubble would be more akin to The Fall Of Rome than to the 1930s.
In a recent interview on Michael Gayed’s Lead-Lag Live podcast, I discuss how economic – and civilizational – collapse will play out if we make the mistake of implementing Austerity during the years ahead. I also propose a much better way forward. Watch this podcast now.
Podcast: What Austrian Economists Are Afraid To Tell You