Ludwig Von Mises was one of the most far-thinking and insightful economic thinkers in history. Mises studied the economy of Russia when communism was riding high; and Mises concluded it was only a matter of time before its Soviet economy melted down.
Mises correctly calculated that below-natural-interest-rate lending by government central banks created unhealthy business cycles. Such below-natural rates incentivized debt rather than savings and capital accumulation, and prompted businesses (like governments) to overextend and make foolish investment choices.
Today the whole world operates according to versions of Keynsian central banking.
Greece–having indebted itself to the European central bank and spent foolishly on welfare and socialistic entitlements–is melting down and defaulting. The Chinese stock market is reporting it has lost one-third of its value in the past month or so.
U.S. federal policymakers have plunged America some $18.3 trillion in debt (while U.S. GDP is no more than about 17 trillion). At the beginning of the Obama administration the debt was $10.67 trillion.
This debt is hardly the fault of Obama alone. It wouldn’t exist without the agreement of Republicans in Congress.
