Economic Apocalypse?

For a few months now, I've had periodic posts about the threat of deflation given our current economic environment. In Financial Sense Online today is an interesting editorial that makes a similar point, although in perhaps a more apocalyptic manner.

To truly understand the article requires getting past the political statements about recent and current leaders. The policies of GW Bush and Bill Clinton are still too recent (and too similar to those undertaken in the last 50 years) to have had a real effect on the economy.

Deflation is quite possibly the greatest threat facing us today and this article does nothing to inspire confidence in our ability to avoid such a calamity. A deflationary economic cycle could very well plunge us into an economic depression that would have the possibility of tearing apart the social fabric of our nation.

I still believe that our best move is to use depreciation of the dollar as a way of exporting the deflationary pressure - for now. However, if we do take this action, we need to use the time it buys us to try to restructure our economy in a way that helps us to possibly avoid deflation. Otherwise all we've done is to put off the day of our final reckoning.

We've had it too good for too long now and the bill is finally coming due. I think it's time for credit counseling on a national scale.