Ron,

It’s a good article. However, this is a problem beyond the realm of economic literature. The problem with mainstream economics is that it doesn’t address the physical limitation of resources. With this failure, we think putting a morsel in each mouth is the same as putting a dime in each hand. The governments fall back on the textbook policies to address real-world problems but there lies a major disconnect between the literature and economic dynamics. By equating economic growth to prosperity, we have created a system laden with debt and excess money supply. I think we will create a bigger problem by relying on the same literature to address the current situation. I think writing off the debt would create mayhem in the short term but it should be beneficial in the long run. In any case, the value of the debt not written off is a psychological one.

Regards,

Jimmy Dotiwala, CFA