For years now this site has been warning of the effects of high house-price inflation. We had thought the crash would be in the 2010s rather than the 2000s. But come it has. Further discussion is on the site.

But the resultant depression is causing many un-necessary effects.

Are there lessons to be learnt: and if so will they be accepted by those for whom a revolution to their accepted thinking is required?

This is where we generally get involved.

To put it at its simplest: if, to stop economic “overheating”, governments had increased income tax - made the better-off contribute their share of the medicine - AND put surplus funds thus obtained into reserves: then adequate money would now be available to help in the times - the inevitable times - of depression.

It would appear that the only reason against this is the really rather immoral way in which political parties and politicians state that for none-too-ethical reasons that income tax should always be kept at minimum levels. And perhaps the cynical attitude of those who think that taxation is anti-work, anti-personal freedom and surpluses will never be held.

But we are not politicians. We merely hope that some of them will be brave enough to get out of old, stale, rather immoral and economically rather dubious thinking.

More work on this will follow in 2009. But there are further thoughts on this subject within the site.