Posts Tagged ‘bust’

“In a free market economy, money gets allocated to where it’s treated best.  But when you introduce the government, you get a business cycle.  You get a boom… which should be followed by a bust.  But that’s not what happens in our economy… Booms are followed by government intervention.  It’s done to prevent the busts from fully occurring.  But it just causes another—more extreme—boom and bust cycle.” -Tom Dyson

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“In 1964,… the US had a total debt load (private and public) of $1 trillion. Today, the economy carries a debt load of $59 trillion.  In 1964, annual US GDP was $656 billion.  Let’s see… today it is about $17 trillion.  Divide $17 trillion by $656 billion and we find that GDP has gone up 26 times – not even half as much as the debt.”  (Debt load up 59x, GDP up 26x).

“Any credit in excess of actual savings is a fraud. It produces a fraudulent boom, which must be followed by a bust. Eventually, the phony credit must go back whence it came.” -Bill Bonner