30 January 2009

Britain's Unsustainable Credit Expansion

Some people seem to think that bank nationalisation/massive public borrowing/lowering interest rates are the best way to get us out of this mess. I do not concur.

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.
Ludwig von Mises.

That's why I'm looking for another currency. I like the Polish government but worry that these smaller economies will be at the mercy of global capital movements. Any other ideas?

4 comments:

Mark Wadsworth said...

Debt for equity swaps.

Not a sheep said...

Gold

Ross said...

Yeah I was going to say gold as well.

The Economic Voice said...

Having a long term stable, sensible and uncorrupt governing and economic system would be worth it's weight in gold.