Industrial Insight

Credit collapse…. | December 15, 2010

http://mercenarytrader.com/2010/12/weekender-the-von-mises-prophecy-explained/

Weekender: The Von Mises Prophecy Explained

2:55 pm – December 12, 2010

In that respect, there is something I think of as “the Von Mises prophecy,” which is a sort of one paragraph summation of Austrian thought — anchored to a prediction — as put forth by Ludwig Von Mises himself:

There is no means of avoiding the final collapse of a boom expansion brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.

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