What do you think of this article on the economic crisis?

[GoodGame]

I liked the criticisms in the first 3 paragraphs, but I think he lost credibility immediately for praising the gold standard currency as being more realistic for being tied to the production of gold.

I kind of agree with his criticism in the 5th paragraph about mortgages, but I don't see him suggesting a real alternative.

All banks should be financial intermediaries that lend depositors’ money, not engines for creating money out of nothing and lending it at interest. If every dollar invested represented a dollar previously saved we would restore the classical economists’ balance between investment and abstinence.

I agree with his statement here in principle, but realistically, if you don't have commodity-based money standard, then money is going to be created when the government thinks it must. Not an economist, but reading the economists that post in CFC, I think it's a necessary evil of getting away from the problems of a commodity-standard.

 

[potatokiosk]

As long as we can keep scrambling to keep up with every new resource that goes into depletion. Ultimately the race for techno-fixes will fail & we'll have to adjust our lifestyles.

We'll find alternatives. We always do.