Pramod pointed me towards a new economics blog some days back – Cynicus Economicus – who, in his latest post, analyzes the nature of the present recession. The West is on the verge of bankruptcy, he says; China and other developing economies are holding trillions of dollars worth of IOUs which the US cannot pay back. And governments are making the situation worse by burying their heads in the sand. Some days back, he said that the UK government was bankrupt a la Zimbabwe.
It is an “unwelcome” break from the regular Austrian theory, because while both predict armageddon and some very painful years ahead if the government doesn’t step out of the way soon, C.E’s doomsday predictions are decidedly worse (as in fear, not in quality).