(Yet another) 20s-90s comparison. This Richebacher fellow seems reasonably intelligent. Too bad about the Austrian bent. However, this
> If money growth has been record-breaking, it is wildly outdone by credit growth, which, like in the
> 1920s, is overwhelmingly taking place outside of the banking system. Mr. Greenspan has presided
> over a credit explosion that simply defies reason and comprehension. Looking exclusively at the
> inflation rate, he readily sanctioned a free-for-all in credit creation. In 1995, total financial and
> non-financial credit had expanded by a little more than $1 trillion. After a rise to $1.4 trillion in 1997,
> credit flows abruptly swelled to more than $2.1 trillion in 1998 and further to $2.25 trillion in 1999. In
> comparison to GDP growth of $459 billion in 1998 and of $500 in 1999, credit creation has been
> truly running amuck.
>
should shock Austrians, Keynesians, Marxists and Physiocrats alike. It truly does look like a gigantic Ponzi scheme, where a larger amount of debt must be created every year both to roll over existing debt and to service it.
Enrique
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