Yeah, that Keynesian stimulus and cash for clunkers will have us on to the road to prosperity before we know it.
Von Mises, were he alive today, would run circles around Krugman and all the academics who proclaim to be ‘economists’. Just because politicians took the easy (keynsian) way out every time the economy went south does not therefore prove theri theory. On the contrary, Von Mises would remind them of this quote he made a long time ago which is very relevant today.
“There is no means of avoiding the final collapse
of a boom brought about by credit (debt) expansion.
The alternative is only whether the crisis should come sooner
as the result of a voluntary abandonment of further credit (debt) expansion,
or later as a final and total catastrophe of the currency system involved.”
One only need look at he housing collapse to see Von Mises was right. The US gov’t debt collapse soon to be upon us will only reinforce his theory. Would you rather have gold now or paper money?
Paper will be useful when the enviros have their way and that’s all there is left to burn for heat in the winter.
When China says “we’re done with dollars and we’re using copper as the only currency we accept”, how excited will you be to be holding trillion dollar notes?
China has an end game they’re working. It involves getting rid of their dollars.