Since 1980 those in power have become used to the idea that debt is growing faster than income. The majority of economic and policy debate doesn’t focus on the real issue causing the financial crisis (which is the rapid expansion of the Fed’s US Dollar denominated assets), it’s actually very simply as Chris Martenson points out:
The basic predicament we are in is that the current crop of leaders in the halls of monetary and political power do not appear to understand the dimensions of our situation.
The mind-boggling part about all this is that it’s not really all that hard to grasp. Our collective predicament is simply this: Nothing can grow forever. Sooner or later everything must cease growing or it will exhaust its environs and thereby destroy itself. The Fed is busy doing everything in its considerable power to get credit (that is, debt) growing again so that we can get back to what they consider to be “normal.”…For the Fed to achieve anything even close to the historical rate of credit growth, the dollar will have to lose a lot of value. I truly believe this is the Fed’s grand plan, if we may call it that, and it has nothing to do with what’s best for the people of this land. Instead, it’s entirely about keeping the financial system primed with sufficient new credit to prevent it from imploding.Submitted by Chris Martenson of Peak Prosperity [10],
