Current Crisis Just More Deja Vue
As discussed in a series of articles from 2008-2009 titled The World According to Derivatives, history clearly reveals that the ongoing economic crisis begun in 2008 was both predicted and predictable. The fault line rests squarely on our current, mathematically impossible monetary system which relies on bank credit serving as money.
Unfortunately, the proper and necessary solution is seriously impeded by the popular misconception that paper money is by nature inflationary despite the best efforts of legions of researchers and even some government officials and economists to educate us.
For example and in relating the 1914 bank collapse and the "credit as money" problem in England at the time of The Great War (WWI), author Arthur Kitson discusses the predictable role that bank credit serving as money plays in economic crises. The following are relevant excerpts from Kitson's 1917 book Trade Fallacies, pp30-34:
It might be recalled that the same thing occurred not twenty years later in the United States in 1929 when banks began collapsing due to the fact that loans exceeded the actual money in the banks by a factor of 10:1. The economic downturn resulting from the bank collapse in the United States then spread round the world.
Similarly, in England as in the United States - and now around the world - government has always come to the rescue of the banking system - AT THE EXPENSE OF THE PUBLIC AND INDIVIDUALS ALIKE. This unhappy, inhuman situation has for far too long been due to widespread, erroneous assumptions about money.
Again as per Kitson:
THE QUESTION BEFORE US ALL: WILL WE SEIZE THE MOMENT OR WILL WE CONTINUE TO MAKE THE SAME MISTAKES WE ALWAYS HAVE, SENDING INCREASING NUMBERS TO EARLY GRAVES AND A LIFE OF UNIMAGINABLE MISERY AND WANT - SIMPLY BECAUSE OF OUR COLLECTIVE FAILURE TO GRASP NOT ONLY THE EXTREME IMPORTANCE OF THIS ISSUE, BUT ITS TRUE SOLUTION?