Up next in 10
So why do we face economic collapse?
0 views
Jun 5, 2025
Conversation about the impending economic collapse, and what are our options to deal with it. For more see http://constitution.org
View Video Transcript
0:00
so why do we face economic collapse we
0:03
are consuming more than we produce how
0:06
can that be hasn't everything consumed
0:08
already been produced by someone no
0:11
because production must also include
0:14
production of a surplus to be paid as
0:16
interest dividends or rent doesn't that
0:19
only apply to consumption on credit yes
0:23
but most consumption today is based on
0:25
credit even if the consumer pays cash
0:28
the producer has probably had to borrow
0:30
or sell stock to finance the production
0:33
but why should production and
0:34
consumption collapse if interest isn't
0:37
paid because those who can produce won't
0:39
produce as much if the most they can
0:41
earn is the profit on a sale that is all
0:43
cash so what would happen if there were
0:46
no more credit or investment and we went
0:48
to an all cash economy that is what
0:51
actually happens in underdeveloped
0:53
countries the lack of credit or
0:55
investment is why they are
0:57
underdeveloped so are we now going to
0:59
have to do without credit and investment
1:01
and become an underdeveloped country not
1:04
completely but after a runaway debt
1:06
spiral there may be no effective way to
1:09
walk it back to a safe level so is it
1:12
possible to return to a safe level yes
1:15
in principle but it would require more
1:17
discipline on the part of almost
1:19
everyone than even the most brutal
1:21
dictatorship has ever been able to
1:23
achieve and planning that is far beyond
1:25
human competence can't the credit Market
1:28
regulate itself yes yes and it is
1:31
actually doing that except that National
1:33
governments are interfering so would the
1:36
credit markets gracefully dial back the
1:38
economy if governments didn't interfere
1:41
no because the markety after the runaway
1:43
will regulate by wiping everyone out the
1:46
market does not necessarily regulate in
1:48
a way that leaves any survivors the
1:51
North African desert is the result of a
1:53
kind of Market the ecosystem left to
1:56
seek equilibrium the Invisible Hand can
1:59
reach out and Crush everyone you've got
2:01
to be [ __ ] me no [ __ ] in your
2:04
pants is what everyone is going to be
2:06
doing when the big adjustment comes at
2:09
this point there seems no way to avoid
2:11
it doesn't such talk become
2:14
self-fulfilling yes but if it encourages
2:17
people to prepare to endure the collapse
2:19
perhaps we can salvage something more
2:21
than we otherwise would how do we need
2:24
to prepare stock up a survival Retreat
2:27
somewhere that won't work for very many
2:30
people most of us need to stare the
2:32
world away from Warfare and tyranny and
2:34
toward minimal constitutional government
2:37
and private charity to one another we
2:39
can revert to an all cash economy but
2:42
not using fire currencies so can we
2:45
return to a moderate level of debt and
2:47
investment afterward is there is way to
2:49
prevent a debt bubble like this one in
2:51
the future perhaps but how to do that is
2:54
the subject of a future conversation
#Credit & Lending
#Debt Collection & Repossession
#Debt Management
#Finance
#Law & Government
#Public Policy