The Problem With Always
“An essential point in the social philosophy of interventionism is the existence of an inexhaustible fund which can be squeezed forever. The whole doctrine of interventionism collapses when this fountain is drained off. The Santa Claus principle liquidates itself.” – Ludwig von Mises
I very consistently hear the argument that the United States is not in real trouble because we can always sell treasuries, there is always a huge demand for treasuries and we can always print more money and, due to the United States being the worlds reserve currency, we can always avoid the pain of printing more money by exporting our inflation/deflation.
The problem with those statements is ‘always’.
Countries cannot ‘always’ do these things. When ‘always’ comes to an end it is never on a schedule or the result of a nice linear graph. The thing you can say always about is that it is always a surprise when it ends.
We have a basic choice here: we can voluntarily choose another fiscal and economic path and disassemble this rapidly eroding bad idea in an orderly manner or we can wait for an involuntary end and it will be disassembled for us in a disorderly manner.
In the long run there are no other choices here.