Who Could Have Possibly Predicted a Collapse?
Murray Rothbard, that’s who.
In the 1991 preface to his Case for a 100 Percent Gold Dollar, Rothbard predicted the collapse of the United States banking system, and foretold with incredible accuracy the situation the American government currently finds itself in:
The United States authorities would then be faced with two stark choices. One would be to allow the entire banking system to collapse, along with virtually all the deposits and depositors in that system. Since, given the mind-set of American politicians, and their evident philosophy of “too big to fail,” it is certain that they would be forced to embrace the second alternative: massive, hyper-inflationary printing of enough cash to pay off all the bank liabilities. The redeposit of such cash in the banking system would bring about an immediate runaway inflation and a massive flight from the dollar.
The world is full of ironies. It appears that by rejecting the ironically-named Emergency Economic Stabilisation Act, the US Congress has prevented a catastrophe of epic proportions. At least for now.