The following two quotes are taken from the book "The Great Reckoning" which was written in 1994:
"Debt cannot go on compounding forever. At the rate it expanded in the 1980s, interest payments would consume 100% of GNP by the year 2015. No such thing will happen. Long before debt reaches the extreme, it will be wiped away. Either an economic deflation will cause the financial system to implode, or a political inflation of an extreme kind will obliterate much of the value of the debts denominated in dollars. One way or another we expect a great reckoning. A settling of accounts. We expect the long economic boom and credit expansion that began with WWII to come to an end."
"The credit cycle unwinding is more powerful than the capacity of governments to bring it under control. A chain reaction of crises is likely to spread as confidence erodes and markets force government to contract the welfare state."
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