[Travis McGee]

"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

-~~Ludwig Von Mises

[johnnycap]

Third week of October, 2009. Be prepared.

[4Liberty]

1. The south west corner of the diagram makes no sense. How is incurring & encouraging MORE (bad) debt - liar loans for mortgages, bailouts to GM’s nursing home, etc - going to “grow” the economy?

The US g0v’t’s bailout policies are like the “policy loans” China used to engage in. They weren’t REALLY “loans,” just welfare checks (wealth transfers using inflationary finance) to state-run industries to give people something to spend, funny (fiat) money...

2. I don’t like blue box near top: “increases taxes.”