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View Diary: Familiarize Yourselves With A Liberal Hero / The Fallacies of Austrian Economic Ideology (108 comments)

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  •  130 years of failure vs 30 years of failure (2+ / 0-)
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    hmi, Johnny Nucleo

    You choose.

    I'm not advocating for a gold standard but I know well enough that most people aren't actually going to challenge their perceptions.

    The fact is, we've created an unsustainable system of debt. It only makes sense that expansion by credit has its limits.

    The Euro crisis will end up badly this year. That was an 11 year old experiment, didn't need 130 years as proof that the system is rotten.

    Western governments and citizens have lived beyond their means. Most people here think they're on the side of the weak and the good when in fact all our consumption is causing problems. We are all in some form or another ugly Americans who inherently believe we have the right to a higher standard of living than the rest of the world.

    If you can't see how all this is linked we're in trouble. There is a role reversal happening. There is a power exchange between Western/developed nations and developing nations occurring. Western nations have spent too much. There's too much debt.

    •  WE DID Nothing (0+ / 0-)

      The unstable system of debt occurred against the wishes of the populace, and besides that, deficits don't fucking matter. History is littered with leaders who arose in times of crisis, forgave huge debts, and somehow society managed to truck right a long without the world coming to an end because some filthy financier didn't get paid.

      As to living beyond our means, yeah, I completely agree but it is more than that: it is the idea that you are not a person, not a serious consideration as a living being, if you are not constantly consuming things. This is a radical departure from traditional American culture that coincides with the rise of fascism, Disney, oligarchy, and high finance. Now I am not saying our christian-based morality was better as a society because it was used to justify evil things at home, but consumerism is used to justify evils abroad that no one has to hear about as long as they don't have to witness honest reporting.

      There are solutions to these problems but it does not include embracing anything like the gold standard.

    •  If we have too much debt, let's pay it off. (1+ / 0-)
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      Ecclesiastaverbs

      In fact, the Fed is doing some of that right now.  They call it "quantitative easing."  So far they've bought up (i.e., paid off) 11% of the national debt (roughly $1.6 trillion).

      They Fed does this by buying Treasury bonds from banks in exchange for credit ("reserve") in an account at the Fed.  Some folks are concerned that this activity might cause inflation, but so far that has not happened, largely because we are in a recession (liquidity trap).

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