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This is a summary in different form of information elsewhere on this website. 

The kind of economics that is taught at most American universities is Keynesian economics, not Austrian economics, Austrian economics being the basis for this website.  (Keynes was British.)  In Keynesian economics, it is assumed that economies can be kept going forever – the idea is to use government money to stimulate the economy when bad times come (to get out of those bad times more quickly) and then pay back the debt during the good times (at least, this is what Keynes said) to be ready for the next downturn so that the same thing could be done again. 

The problem with this idea is that human nature is such that the debt typically does not get paid back during the good times – more debt (although not necessarily nearly as much as during the bad times) simply gets added during the good times (because deficit spending feels so good in terms of its near-term result) so that the debt never gets paid back.  (Note:  I am not talking here about the huge deficit spending that Obama is doing – the kind of deficit spending that I am talking about got going long before the Obama administration took office.)

Also, economic growth goes down over the course of time as an economic up-cycle matures – so that even if a period of debt pay-down happens during a final burst of substantial economic activity (which, if it happens, is usually no longer than a few years and typically not nearly that long) toward the end of the long-term economic up-cycle, that period of time is not long enough (even if it lasts a few years), and the burst of economic activity is not strong enough, to come anywhere near paying off the debt that has been accumulated along the way. 

This is what has happened in modern America.  Austrian economics predicts it, Keynesianism does not.  And since Keynesianism dose not predict this, it also does not predict what the consequences will be – but Austrian economics does. 

So once one is on that path of using government debt to try to stimulate the economy out of bad times, typically the ultimate result is very inevitable and, thus, predictable.  That result is a massive debt implosion and (therefore) a deflationary depression. 

It can take a long time to get there – and it is doing so in our case – but, ultimately, the result is inevitable and unavoidable. 

This website is dedicated to dealing with that and the consequences of it – in a more productive and effective way than most people will be doing who do not see this coming and (in at least most cases) do not even want to accept the possibility of it happening (which will not make it not happen – those people will simply be completely surprised by it, or at least they will be greatly dismayed and disheartened by it; people like me, on the other hand, have seen it coming for years and will simply be accepting it as an inevitable consequence of what happened before – and we will know what to do about it because it is part of a larger process and we know what that larger process is, too, so we can see, at least mostly, what is coming afterward, too).