The progress of the enormous debts which at present oppress, and will in the long-run probably ruin, all the great nations of Europe, has been pretty uniform. (written in 1776)
When confidence goes, the end is very near. It always comes faster than anyone expects and it always seems to be unexpected.
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 the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.
The US has 75 trillions of unpaid for liabilities in a 15 trillion economy. How are we ever going to be pay for it? It's a number that cannot happen. So I don't worry about it. The far more interesting question is: what happens at the moment we realise that we can't pay 75 trillion?
I put it to you: if you rob people of their ability to determine their own future, they will turn to violence.
The old saying holds. Owe your banker $1000 and you are at his mercy; owe him $1 million and the position is reversed.
Government spending cannot create additional jobs. If the government provides the funds required by taxing the citizens or by borrowing from the public, it abolishes on the one hand as many jobs as it creates on the other. If government spending is financed by borrowing from the commercial banks, it means credit expansion and inflation.