'The Prison of Debt '

'The transition to a system of sound money won't be an easy task, but how can it be avoided in the long run? Unfortunately is seems that only a major crisis will create the necessary incentives..'

<blockquote>'In fact, as Der Spiegel points out in a recent article, the entire developed world finds itself in a 'prison of debt' these days. Early on in the article the root of the problem is correctly identified: the ability of fractionally reserved banks and the central banks that backstop them to create credit and money from thin air almost without limit. It also acknowledges that the cutting of the dollar's tie to gold in 1971 was the last straw that allowed debt and the money supply to enter a terminal exponential growth phase. In other words, it really is no big secret anymore what the problem actually consists of. And yet, no-one seems to know how to deal with it. It is still not even up for debate in establishment circles, with the occasional exception provided by figures like Jens Weidmann, the conservative president of the Bundesbank.

So why not ask the advice of the economists of the Austrian school, who have always been critical of this monetary system, tirelessly pointed out its flaws and offered alternatives galore along the way? Not only are they the only ones who have analyzed the problem in depth, they are also the only ones who truly understand the economic effects of credit expansion by dint of possessing an extensive capital theory – a subject woefully neglected by other schools of economic thought.

The transition to a system of sound money won't be an easy task, but how can it be avoided in the long run? Unfortunately is seems that only a major crisis will create the necessary incentives – and even such a crisis is not necessarily a guarantee that a sound monetary system will be adopted. In fact, it is our distinct impression that not a whole lot has been learned as of yet from the crises that have struck to date.'

- Acting Man (Source, November 19, 2012)</blockquote>


Context (Phase 1: 2012 – 2022 - '..a process of transition toward the only world financial order..' - page 22)

<blockquote>Gründung des Ludwig von Mises Institut Deutschland - '..to think over the fundamental problems of life and action.'

(Haptonomy - Affectivity) - Praxeology as the Method of the Social Sciences - (Affective) Phenomenology of the Social World

Affective Introspection</blockquote>