tag:blogger.com,1999:blog-2098432983500045934.post705046211576372989..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: Like the windThe Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2098432983500045934.post-30903930142825692382012-02-11T21:08:23.637-05:002012-02-11T21:08:23.637-05:00"I think the austrians would say the same, Gr..."I think the austrians would say the same, Greg, if I remember right"<br /><br /><br />I imagine they would. Peter Schiff was harping about consumer debt right along with the MMTers back in the mid 2000s. <br /><br />Heres a huge difference though. Austrians want the debt to go unpaid, banks to crash, prices to fall, wages to fall and we all start over from ground zero. I prefer a more orderly adjustment which keeps people from losing their income and being able to meet most of their obligations. Some will certainly be unpayable, and those must be written off.Greghttps://www.blogger.com/profile/03139782404004492965noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-11024860062153732352012-02-10T17:45:33.838-05:002012-02-10T17:45:33.838-05:00GASP you're both Austrians! Pretty soon you...GASP you're <i>both</i> Austrians! Pretty soon you'll be quoting Rothbard on your blog. :)<br /><br />Could be mistaken, but it seems to me that I generally focus on the *excessiveness* of debt, not the existence of it. For example, if we expect the economy to grow at 3 to 5 percent, maybe we need debt that is 5 or 10 percent of GDP. Or 20%. Or 100%. But why do we need to let debt accumulate to 350% of GDP. That would be excessive even if it wasn't unsupportable!The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-24246878385333850472012-02-10T10:57:45.102-05:002012-02-10T10:57:45.102-05:00Which brings it back to my point, I think, that de...Which brings it back to my point, I think, that debt is neither a good thing nor a bad thing, it is simply a thing, like any other useful tool (that can hurt you if you're not careful, and also be used as a weapon.) It becomes bad when it is either not serviceable, or the service becomes too burdensome.<br /><br />I think this is consistent with what Greg said.<br /><br />Cheers!<br />JzBJazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-22702127720958259892012-02-07T20:00:27.185-05:002012-02-07T20:00:27.185-05:00I think the austrians would say the same, Greg, if...I think the austrians would say the same, Greg, if I remember right.The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-22627057902196127212012-02-07T12:47:37.192-05:002012-02-07T12:47:37.192-05:00I hate the term business cycle. A better term is ...I hate the term business cycle. A better term is credit cycle. Businesses use credit them selves and rely on customers using credit. When customers no longer seek credit (maxed out already) then businesses stop seeking credit too (why expand..... no customers). It all hinges on the levels of consumer debt relative to the consumer income.Greghttps://www.blogger.com/profile/03139782404004492965noreply@blogger.com