That Sinking Feeling

That Sinking Feeling: <p>
Since 1968, when the United States stopped backing dollars with gold, the world has been transformed by an explosion of credit.  In the US, total credit increased from $1 trillion to $50 trillion in only 43 years.  Much of the rest of the world experienced a similar credit revolution.  That credit boom created much more economic growth than would have occurred in its absence.  Now, however, the private sector cannot repay the money it borrowed.  The income of the seven billion people on earth is simply not high enough (as it is currently distributed, at least) to pay the interest on all the debt.</p>

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