I have long been persuaded that we will ultimately run into a stonewall with our debt dilemma and how to handle it. The solution so far has been to let the less well placed individuals of society bear the burden. This is the austerity programs that are imposed. And it is getting us nowhere. We are cutting down the economies through austerity programs, we are cutting down the welfare system, we are cutting down health and education and so on. [...] This reduces and cuts out purchasing power from the economy, and the purchasing power is what keeps the wheels of industry going.
We have seen it playing out in Europe now where they have taken steps, one after another, and they basically have not identified the problem. And if you have not identified the problem - and you cannot do that with modern monetary economics - when you cannot identify your problem, you cannot design a solution for it. You must know what your are talking about, and they don't. You have a system overburdened with debt and the solution cannot be to add more debt to it.