Economist: Cut government budget by 98% or risk complete economic collapse

In an interview with the International Speculator, Doug Casey, a renowned investor and economist, gives his policy prescription for fixing the economy if he was the president.  It may sound drastic but it is what is really needed if we are to avoid an economic collapse and let the economy have a full robust recovery.  It’s a very interesting interview and I highly recommend reading it in its entirety.

We need to starve the beast; so all these marginal, so-called budget cuts the politicians are wailing about are just smoke and mirrors – not a real, meaningful scaling back of the government. It’s too late for half measures. I’d cut the budgets of the federal, state, and local governments by 98%. For starters.

It’s just a question of whether it happens in a somewhat controlled, voluntary way, or whether it comes about as a result of a totally out-of-control collapse. What’s going on today is completely unsustainable, so I’m convinced this sort of change is coming – it’ll just be that much more destructive if we let it come as an involuntary crash. It’s like when you have an old, unstable building that will collapse sooner or later; it’s wiser and safer to bring it down at a time and in a way you control than to let it collapse on its own, with no warning to those around.