Planck Foundation



Credit is an artificial resource and was in theory capable to grow further for yet an other decade or two (as long as there where economies in a grow phase), but the artificial resource Credit has been overstretched. Credit could grow as long an economy grows. When an economy reaches it peak, credit should have become more expensive to brake the growth of credit as growth of an economy slows down. Economic growth is finite, something we don't want to hear, but we live on a planet with limited and finite resources. Endless growth is thereby not possible: we only have one earth with its limited capacity. One thing we must understand is that credit also has its peak moment. As credit is based on money creation by loans (and there is in this system of money creation no money created for interest). Our current financial system only could be healthy in times of continuous growth. If growth stops and every asset is already mortgaged, money creating stops and there is no new money created for paying the interest on the existing loans. Use the WorldBank and the IMF only for the less attractive assets (as in: debts).

Author: Gijs Graafland

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