## Sunday, May 16, 2010

### Economic Alarm.

This is what people who are economically alarmed believe.

Do you guys think they are correct, or do you see hope?

h/t:  Daily Paul

1. I agree that the deficit is a big problem, but overall they are too pessimistic for me. It all depends on a lot of variables - if there's a libertarian movement taking control of Congress, we'll be able to solve this mess. If the Fed isn't careful winding down the interest on reservse policy, we could be thrown into hyperinflation pretty quickly. I disagree with their estimate of inflation. I think the official estimates understate it a bit. Overall I'd wish they'd give the market a bit more credit. They continually claim that it will fall apart at the slightest government intervention. Markets are more resilient than that. Finally, I get annoyed at the "we should have had a depression" crap. We don't need a depression. If production is high enough to maintain consumption, it can be maintained forever.

2. Thanks Azmyth.

"Overall I'd wish they'd give the market a bit more credit. They continually claim that it will fall apart at the slightest government intervention. "

Reminds me of Adam Smith's quote "There is a lot of ruin in a nation."

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