What if the Sovereign debt levels are too high? What if a collapse eventually is the only thing that can happen? Will it all be bad? Or can there be some good to it?
Politicians, bankers, and everybody else for that matter are afraid of collapse or default. We all think life will be awful, that we would go back to pre-industrial age living.
I don't think so. Not any more. Actually, I think it would be better. Debt would be forgiven, "zombie" institutions would be eliminated (no money or credit to support them), a new monetary (hopefully sound money) would be introduced, and the world can get back to producing wealth. Would there be financial pain? Yes. Things are out of balance and people would suffer. The problem now is, these same people are suffering anyway, albeit at a slower, more drawn out way. Inflation is eating away at savings for retirees and Social Security recipients, along with the middle and lower class having a harder time saving and paying bills with devalued money. Clearly things will get worse for them over time.
We have hard times one way or another. I say let's "reboot" the system and turn things around. Bill Bonner wrote about that recently. His ideas make sense to me.
Here is his article.
Feel free to comment.
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