This is an interesting article by a former World Bank economist. It goes along with a few (but growing number of) people are saying - in the last 30 years, the economy grew far to big due to lax Federal Reserve rules, financial shenanigans, and government spending. Now, it needs to contract. Mr. Daly articulates it very well.
Here is a brief excerpt:
Can the economy grow fast enough in real terms to redeem the massive increase in debt? In a word, no. [...] The population of “negative pigs” (debt) can grow without limit since it is merely a number; the population of “positive pigs” (real wealth) faces severe physical constraints. The dawning realization that Soddy’s common sense was right, even though no one publicly admits it, is what underlies the crisis. The problem is not too little liquidity, but too many negative pigs growing too fast relative to the limited number of positive pigs whose growth is constrained by their digestive tracts, their gestation period, and places to put pigpens.
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