“There is no means of avoiding a 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 (hat tip Jim Quinn)
My prediction for the current debt crisis: John Boehner and the establishment Republicans will form a coalition with the Congressional democrats to sell out the American people. They will raise the debt ceiling, Obama will sign the bill, Bernanke will officially begin QE3, and it will be business as usual. The dollar will continue its downward spiral and much of world is going to starve to death. During the Weimar Republic, food became the most expensive part of people’s budget. Gonzalo Lira explains why food production fails during times of hyperinflation: Is Farmland A Smart Hedge Against Inflation?