“Those who don’t know history are destined to repeat it.” Edmund Burke
However it is not sufficient to just know history, one must understand the underlying cause of events. In 1910 the money supply in the US was $13.3 billion. (M2) In 2010 the money supply was $8.8 trillion. (M2) This increase in the money supply was created by the banks.
When a bank loans money it creates that money it does not take the money from another account. The problem with this is that more debt than money is created by the interest charged. The only borrower that can and has continued to borrow and have money created and place into the economy is the federal government.
Read my book “Debt Crises, The Cause of Recessions and Depressions”.
Thus the US government debt has increased from $2.65 billion in 1910 to $13.56 trillion in 2010.
Thus in the US we have a Debt Crisis. This is done worldwide; thus there is a worldwide Debt Crisis.
