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Our civilization would not be able to handle such a transition from an
expansionary credit based economy where goods and services were readily available into a paradigm of credit contraction, supply shortages and destitution and this is what is coming. There is no way to prevent it – only to defer it until a later date – and that day will soon be upon us. Words: 590
The single most important factor responsible for fueling the last several decades of economic growth has been credit expansion. Whether it’s central banks lending money to large financial institutions, or private banks dispersing funds to businesses and individuals, our lifestyles simply would not have been made possible without it…We’ve built huge homes, enjoyed healthy diets, taken luxurious vacations and even exported our menial jobs…In the process we’ve expanded our national debt to unprecedented levels…and, by all accounts, we now live in a system built on nothing more than a promise to repay what we’ve borrowed.
This reverse trickle-down economics has left everyone bloated with debt, including the government as a whole, as well as the individual American who has bought his house, car, furnishings and overall lifestyle by taking on insurmountable levels of debt.
In 2007 we began to see cracks in this supposedly stable economic model….[and now] while most refuse to admit it, the evidence is clear. Our system of “creditism,” as described by The New Great Depression author Richard Duncan, is dependent on monetary intervention and expansion by our central bank. Unless the Federal Reserve continues to artificially expand credit and print more money, the system will collapse in on itself – just as it almost did in 2008.
At some point, says Duncan, the expansion simply won’t be possible anymore. How bad can it get once that happens? According to Duncan,…if credit now begins to contract there is a very real danger that we will collapse into a new great depression [saying:]
“As long as credit grows rapidly, that makes the economy grow. However, the day always comes when credit can’t expand any further and then the new depression begins….so the policy is to ensure that credit continues to expand….that’s what government debt is doing; increasing government debt is making total debt grow, otherwise we would have already collapsed into a debt deflation death spiral….If this credit bubble pops the depression is going to be so severe that I honestly don’t think our civilization can survive it.”
When someone loses their income stream…they are unable to pay their mortgage, put food on the table or live any semblance of the life they came to know while they were gainfully employed. Our government, like any individual American, also has an income stream. That income is based on taxes, and in recent years, overwhelming borrowing.
In the near future we will reach a point where we’ve taken on so much debt that our creditors will no longer lend us money. Because tax revenues are already dropping due to negative economic growth, the government will essentially be left with no income. Like someone who loses their job, they will have no way of meeting their monthly obligations. They won’t be able to provide nutritional assistance, there will be no health care, and social security benefits will stop being distributed….
One way or another, life in America as we have come to know it will take a drastic turn for the worse and when civilizations transform in this way it often results in violence, starvation and bloodshed. Prepare for it, because it will be on our doorsteps soon enough.
Editor’s Note: The original article has been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.
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