Excerpted from Worse Than A Depression by Monty Pelerin:
We are witnessing the death of democratic socialism. No politician wants it to happen, but none can prevent it. We are at the point where the Ponzi concept of â€œextend and pretendâ€ has been extended beyond social commitments and banking systems to entire economies. We are approaching what Ludwig von Mises described as â€œthe crack-up boomâ€:
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.
Political cowards around the world have chosen Misesâ€™ second outcome â€“ â€œa total catastrophe of the currency system involved.â€
None of the countries have the resources to continue to fund current programs. As their economies deteriorate, they will â€œprint moneyâ€ in order to continue meeting obligations and stimulating. At some point, the money supply will explode vis a vis the goods available.
We have seen many â€œimpossiblesâ€ in the last couple of years. Be prepared for the next â€” a hyperinflationary depression. It is not impossible, it is not an oxymoron and it should surprise no thinking economist. It is nearly upon us.
Your lifestyle will depend on how prepared you are to meet this newest, biggest and most horrific Black Swan. This beast will destroy economies, overthrow some governments, and alter the nature of the world.
Wake up people! Your politicians have no intention of heading this off.