Doomed by Debt

Asylum Watch

Unfortunately for the romantics out there, it is not love that makes the world go around. It’s money that makes the world go around, right? Well, if you think of money as those units of currency you carry in your wallet or pocket, then no it’s not actual money. Actual money (currency) is in relatively short supply. No, what makes the world go around is money created out of thin air; otherwise known as credit or debt. Think fractional reserve lending. Credit/debt is money that was never generated by the real economic production of a good or service. Credit/debt is, however, a claim against the future real economic production of goods and services.

Credit, in and of itself, is not a bad thing. Most people could never hope to own a house or other big-ticket items, if it were not for credit. The problem comes when a nation’s economic growth becomes…

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