>>And you say that based on some economic theory? A number of things, which were just about the same size of a disaster, have already happened and didn't cause anything worse than inventing more imaginary money (i.e. robbing everybody equally), in form of overt and covert bailouts, haircuts and other things which became normal within the week they were invented.
>
>It is regular capitalism mantra more then real theory but nonetheless... {g}

I think most of the theories come after the fact :).

>How ingenious huh ? Create money, invest it, economy grows (stocks & house prices) and justifies it. No inflation. Nice! Everybody happy! (Or so mantra bangs into everybody's head {g}).

Creating money just as much as the economy has grown is as possible as being partially pregnant. There's no way one can stop printing money.

>In reality (which is about to surface it's ugly head sooner or later) those stocks (economy) are worth fraction of their nominal prices,

But they are worth their nominal amount! It's the money that's imaginary.

>banks no longer have single (real) penny to their name (if you count out all possible liabilities it is potential black hole!) and whole system is being maintained by pumping in virtual (+black/gray) money.
>I posted link to one article recently which shows various graphs; Only one that has long term steady upward trend is - public debt!
>Question is how long can all this last ?

As we have learned in 1993, endlessly.

>You sure remember mid 80ies; Milka Planinc economic reform program named: 'Stabilizacija' and all that happened to our middle class la-la land there and after ? (Reminder: 2 cycles of hyper inflation wiping out everybody's money (debts as well!), and finally big civil war and ultimate destruction of our bellowed country)
>
>Does 'Austerity' rings any bells ?

Nope, some guys stole the wheelbarrow and then stole the church bell, loaded it on the wheelbarrow and took the bell two villages away to sell as scrap metal. No bells are rung.


>Back to economic theories;
>My conclusion after all these years (ok, confession of naivete) is that simply THERE IS NO such thing as successful economic system. Western Economy is just as unsustainable/inefficient as our socialist ('dogovorna') once was.

The same idea... the few big guys make deals among themselves - "competition is a sin", as once the old Rockefeller feller said.

>>If the guys say so. Unless people start growing their own food.
>
>It will eventually come to that. Hence me being interested in your new neighborhood :))

The first tomatoes are ripe now! Delicious, sweet, perfect, all natural, nothing accellerated, and in comparison the commercial junk tastes almost as bad as the american plastic version (except the two times I bought them roadside - and mind you, even roadside was same junk in a dozen other cases).

You visiting soon?