I reported in the Greatest Bull Market during 1931 chapter that on the “very floor of the Congress echoed words claiming that even a dictatorship was better than the pains of depression.” Turn up the stress and you will accept anything to stop the PAIN. This type of political change becomes possible ONLY during a crisis. This is the Wave of Creative Destruction.
The question not being asked here is WHAT IS THE ALTERNATIVE? More and more taxes, lower and lower growth, higher and higher unemployment until we reach revolution? The likelihood of ANY other reform is ZERO that will provide any sort of balance that would correct the economic nightmare in which we find ourselves.
We either default on all debt or we monetize all debt, and taxes will continually rise back to insane levels of greater than 70%. The average German already pays more than 50%. How much can the people endure?
What will cause some solution to be adopted is only PAIN. The greater the PAIN then the greater the solution. This is designed to STOP authoritarianism. If this does not take place, don’t worry about reading this blog. I myself will get the hell out and wait for the mushroom cloud to appear. I cannot see any hope to save society without a debt-equity swap. Where such things have failed as in Russia, are different circumstances. They were used in the form Soviet Satellites to make the transition from communism to capitalism. They restricted participation to domestic holders. Nevertheless, it worked. This is the ONLY way out. We just continue to perpetually borrow and raise taxes, hunt money, and end the world economy by government greed or we try to prevent insane disaster. There is no alternative here.
Full article: Why We Need the Crash & Burn (Armstrong Economics)