Tag Archives: credit

Does Any of This Make Sense?

We rarely ask “does this make any sense?” of things that are widely accepted as beneficial— or if not beneficial, “the way it is,” i.e. it can’t be changed by non-elite (i.e. the bottom 99.5%) efforts. Of the vast array … Continue reading

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Why Our System Is Broken: Cheap Credit Is King

Cheap credit–newly issued money that can be borrowed at low rates of interest–is presented as the savior of our economic system, but in reality, it’s why our system is broken. The conventional economic pitch goes like this: cheap credit enables … Continue reading

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Why the Massive Expansion of “Money” Hasn’t Trickled Down to “The Rest of Us”

There are numerous debates about money: what it is, how we measure it, and so on. In recognition of these debates, I’m referring to “money” in quotes to designate that I’m using the Federal Reserve’s measure of money stock (MZM). … Continue reading

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Why the Coming Wave of Defaults Will Be Devastating

In an economy based on borrowing, i.e. credit a.k.a. debt, loan defaults and deleveraging (reducing leverage and debt loads) matter. Consider this chart of total credit in the U.S. Note that the relatively tiny decline in total credit in 2008 … Continue reading

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2016 Theme #5: The Systemic Failure of High Finance

A number of systemic, structural forces are intersecting in 2016. One is the failure of high finance to fix the global economy’s systemic problems. The operative conceit of the past 7 years has been that high finance can fix whatever’s … Continue reading

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