“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, economist, libertarian theorist; 1881-1973
The current crisis was brought about by too-low interest rates and thus by too much cheap money. This bubble is being fought with much, much more cheap money and historically low interest rates, which, as we speak, is creating a much, much larger and even more dangerous bubble — the “bond bubble”. It is not a question of whether this bubble will burst, but when.
Contrary to all assurances, the long-term survival of our financial system based on compound interest is not possible mathematically. Man is capable of manipulating many things, but we can’t outsmart math. For this reason, it is of fundamental importance to protect private and commercial assets.