I've heard these words for the last thirty years I've been talking about the US economy, so why should the next 30 be any different!?
I find when time renders doomster predictions wrong, people just shout that the end is just that much nearer!
Recession fighting reminds me of aggressive forest fire fighting. Recessions and stock market corrections are necessary to clear excesses and imbalances. Small, periodic forest fires are necessary to destroy excess brush and restore the nutritional balance for the trees.
The more you fight the fire, the greater the chance and potential damage of the next one.
At some point there so is so much dry brush, the forest must either die from the lack of nutrients or be destroyed by the fire.
Eventually, instead of a small fire once a decade, once every 100 years you will get a fire so tremendous that it vaporizes forests across entire geographical areas. You get complete destruction and then a recovery process can begin.
Grace, you live close to the forest full of thick brush which you deny exists, it's been 80 or so years since the last fire and you keep saying that another one is not possible, just because it's been so long and everything has been fine and the fire station with experienced personnel and plenty of equipment is located close by. It only means when the next fire comes it will much bigger than you can imagine. And if somehow the fire personnel is able to contain it as well this time, it will set the stage for something even worse down the road.
To live in a healthy forest, we need periodic forest fires. Right now, after years of aggressive stimulation, choking with debt, the US economy is like a sick and dying forest, so imbalanced that a devastating fire is not only a certainty, it should be welcomed if we are ever again to live in a healthy forest ( prosperous free market economy with sustained and balanced growth and rising true wealth ) |
