The Coming Implosion from Government Profligacy

Ruminations on an article by Emile Woolf

Emile Woolf, a retired forensic accountant who founded and ran an international school for accountancy overseas for many years, writes cogent and pungent essays on British economic affairs that usually ring true for those in the U.S.A. as well. His most recent Economic Perspectives 116 May 2022 (The official website of Emile Woolf (emilewoolfwrites.co.uk) details his concerns about the profligate ongoing never-ending spending by the Chancellor of the Exchequer in the U.K. and its foreseeable consequences. For any country basing its economy on a fiat currency backed only by the “faith” of the governed, this spending must eventually lead to an implosion of that system. (Remember John Law’s Mississippi company and the collapse of the French economy.)

It's that "implosion" that is of concern--given the self-sustaining nature of any government and its bureaucracy, there may be no end to profligacy, merely sustained high inflation to debase fiat currency further, thus discounting prior and…