AFTER THE DEBT CRISIS
This an important topic. Of course, it’s hard to manage a modern economy without interest in *some* form. There is always an implicit cost of capital.
But I think the general concepts of (a) preferring bootstrapping over equity, (b) preferring equity over debt, (c) allowing debt only for production rather than for consumption, and (d) taking monetary policy out of the hands of the state is on the right track.
Concretely, that means debit cards but not credit cards. It means gold and digital gold rather than bonds. It means no student loans or 30 year mortgages. And in turn it means prices for education and housing finally fall, as they should, thereby destroying the tuition bubble and the second housing bubble.
As Dalio among many others has written, we’re at the start of a global deleveraging, also known as a sovereign debt crisis, also known as a massive contraction of this ponzi economy with its unsustainable levels of debt.
So thinking about what the world should look like after the crisis is important.
