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Let's Have Inflation
Required reading: a word from my favorite deflationists bond investors that have beaten all others handily, at Hoisington Investment Management (.pdf). They agree with my view that most of the actions taken by our government are useless or even counterproductive. They cite Kindleberger, Schumpeter, Minsky and Kondratieff. I would add in the Austrians. High levels of debt and debt complexity lead to large recessions/depressions eventually.High levels of debt and debt complexity rob an economic system of flexibility. So long as the debt is increasing, there can be one tremendous boom. But when the asset cash flows can no longer carry the debt, the system goes into reverse, with falling asset values. During that time, monetary policy is useless, and fiscal policy is useless, until the debt levels are reconciled. Posted by: g(r)omgoru 2009-01-20 |
| http://www.rantburg.com/poparticle.php?ID=260335 |