Economists, our governrnment, and central banks want to keep this economic bubble from bursting because they know if it bursts, there will be an economic collapse and whoever’s in charge will look like total idiots.
They’re in denial about the great reset and bubble burst ahead — which started to occur in late 2008.
We’ve clearly seen the greatest debt bubble in history, with total debt in the U.S. growing at 2.54 times GDP between 1983 and 2008. How could any economist not see that as a warnrning sign of the great reset and debt deleveraging to come? It’s inconceivable to me, yet almost none of them do because they’re in denial.
I understand that. But their desire to protect their reputation has resulted in very bad economic policy that will haunt us over the long term…
They’re killing the golden goose of free-market capitalism that has made the U.S. and other developed countries the richest in history… richer than any forecasters a century or two ago believed possible. David Stockman, our keynote speaker and author of The Great Deformation, will address this very issue at our Irrational Economic Summit in Miami from October 16 to 18.
The bottom line is that denial has become the most destructive force on earth.
Denial Will Not Avoid an Economic Collapse
Democrats who ironically advocate protecting everyday citizens are arguing that we had to save the banks in 2008 for the good of the economy. They’re calling for more debt to stave off the debt crisis.
Are these people nuts?
They want to keep the bubble going forever. They’re in denial about how sustainable ever-growing governrnment and private debt levels are… how effective short-term stimulus is. They want all the gain without the pain.
Republicans are in denial too.
They’re fighting against ever-rising debt ceilings and levels. I agree with them 120%! Only I recommend restructuring private debt levels and radically restructuring retirement ages toward 75 to cure the predictable governrnment and entitlement disasters ahead.
But the Republicans who preach capitalism, lower taxes, and trickle-down economics (which I believe in, just on a longer-term scale) are missing an even bigger crisis: pollution.
Pollution is exactly like debt. It’s a way of living better today at the expense of tomorrow.
I have come to realize that the massive pollution that has enabled our exponential rise in standards of living is the greatest long-term threat to our economy and progress… not rising debt.
Pollution damages the most fundamental capital resources that all life depends on: water, soil, and air.
Yet again, denial is keeping those with the power to do something about the situation blind to the danger.
How can Republicans claim to be capitalists and then ruthlessly degrade the most important capital available to us? How can they call themselves conservatives and not favor conservation?
The solution is simple: Natural resources shouldn’t be considered free anymore. They shouldn’t be seen as inexhaustible. Instead, they should be seen and valued as the financial asset they are. They should have a price on them, just like financial capital or labor.
A carbon tax is a good place to start. But it mustn’t be arbitrary. It must take into account the pollution and clean-up costs, so allowing consumers and businesses in the free-market system to make better decisions for now and the future. Other taxes could be cut to offset this new tax.
We’ve been over-borrowing since the early 1970s. We’ve been over-polluting since the late 1700s.
Pollution is the crisis of this century!
If we don’t deal with pollution and rapidly rising CO2 levels, we could literally choke ourselves into extinction.
It’s time our politicians and economists break free of their denial… worry less about looking like idiots… and start to implement policies that are good for the markets and economy, and the planet.
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