There is some truth to this. Some countries are currently on an unsustainable path. What it leaves out is that these countries can change before things get too bad.
Originally Posted by Hephasteus
The behavior described here is quite healthy in moderation, but as with all things it can get quite ugly when taken to the extreme as some have been lately.
It will get corrected, eventually. That's how the market works. The only question is whether it will be tough to fix, or really, really tough.
A lot of the people with the views here believe that the answer is to get rid of central banking and go back to a gold standard. That would be a huge mistake. It solves a couple of problems while opening back up 100 more larger ones. There was a reason the old economic system was ditched, and that's because it simply did not work well. Everything going on right now is tiny in comparison to the problems of 80 years ago.
As large as the American debt problem seems right now, it really wouldn't take very much to fix it. Just the political will to get it done.
Increase the age social security benefits start by 5 years.
Increase tax on millionaires+ by 10%.
Cap the federal budget to keep it from growing more than 2.5% a year.
I haven't actually run the numbers, but I'd be willing to bet that would solve all our problems just by those 3 things right there.