On second thought, how about we do a happy fun post, instead? Well, I’d love to — but I can’t. From CNBC:
“We’re in a very unfortunate position to be here,” Richard Duncan, author of The New Depression, warned on CNBC’s “Squawk Box Europe” Monday.
“When we broke the link between money and gold, this removed all constraints on credit creation. This explosion of credit created the world we live in, but it now seems that credit cannot expand any further because the private sector is incapable of repaying the debt it has already, and if credit begins to contract, there’s a very real danger that we will collapse into a new Great Depression,” he argued.
“If this credit bubble pops, the depression could be so severe that I don’t think our civilization could survive it.”
He’s sort-of right on that last point. I have a lot of faith in the American people. I think our civilization would emerge out of the mess just fine. Perhaps, and tragically, with a sizable population loss — but we would survive.
Our government, however, would be doomed. It might already be.