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News Link • Philosophy: Political

Withdrawing Political Legitimacy

•, By Gary North
The crash version relies on the image of two trend lines crossing. One or both of these must end. An example: the unfunded liabilities of the U.S. government (rising fast) and the expected revenues of the U.S. government (not rising fast). This outlook is best expressed by Stein's law: "When something cannot go on, it has a tendency to stop." That is a tipping point, in the way that a train wreck is a tipping point.

I think both trends are in operation today. One has to do with compound economic growth. In the long run, it prevails. The other has to do with the expansion of the state. It has to do with the short run. The model is the train wreck.We hear a similar phrase: inflection point. These are two names for the same process.

There are two versions of this process. One points to a lift-off. The other points to a crash.


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