Tuesday, July 17, 2012

Economist Says It's Time to Party Like It's 1999

The sky is not yet purple and people aren't flying everywhere, but that's not stopping economic analyst Roger Duncan from warning people it's time to party like it's 1999.  According to Duncan a society destroying depression is only a few years away.

“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.”
Duncan argues it's not all bad, though.  The looming economic disaster presents an opportunity to have a lot of fun.

“The increase in government debt is making total debt grow, otherwise we would already have collapsed in to a debt-deflation death spiral. This creates great perils, but also tremendous opportunities.”
Duncan argues that governments in the developed world should borrow “massive” amounts of money at the current low interest rates to invest in new technologies like renewable energy and genetic engineering.
“Even if this is wasted, at least we could enjoy this civilization for another ten years before it collapses,” he said.
Is it time to just give up on hopes are governments will wake up to their reckless spending habits and start instituting necessary reforms or should we just through our hands up and say, "f4(k it, let's party like it's 1999?"

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