Edward Dowd: A Global Financial Collapse Is a Mathematical Certainty

submitted by TheJamesRocket from self.debatealtright

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[–]EthnocratArcheofuturist 5 insightful - 1 fun5 insightful - 0 fun6 insightful - 1 fun -  (2 children)

Libertarians have been saying this for over 10 years now. Goverment debt isn't the problem, private debt is. As long as the US dollar remains the world's reserve currency -- and the US military remains the most powerful military on Earth -- the US can keep borrowing and "printing" money with ease. If anything causes a global financial collapse it will either be another private debt implosion like we experienced in 1929 and 2007, or an energy -- most likely oil -- shock.

[–]send_nasty_stuffNational Socialist 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

As long as the US dollar remains the world's reserve currency -- and the US military remains the most powerful military on Earth

These aren't guarantees. When either of these two things cease it will be an international depression not a local one. In fact I'm sure we will reach a point that even the international economy will not be able to sustain the overprinting.

[–]EthnocratArcheofuturist 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

In the long-run you're 100% right.