The Global Debt Crisis: How We Got in It and How to Get Out

August 25th, 2011 by Andy in Banks, Banksters & The Financial Crisis

Ellen Brown delivers one of the clearest, most concise, easily understood pieces I’ve read on what makes up our banking and financial system, who runs it and why, and how we got into the current mess that we have, and whose primarily responsible.

Countries everywhere are facing debt crises today, precipitated by the credit collapse of 2008. Public services are being slashed and public assets are being sold off in a futile attempt to balance budgets that can’t be balanced because the money supply itself has shrunk. Governments usually get the blame for excessive spending, but governments did not initiate the crisis. The collapse was in the banking system and in the credit that it is responsible for creating and sustaining.

Contrary to popular belief, most of our money today is not created by governments. It is created by private banks as loans. The private system of money creation has grown so powerful over the centuries that it has come to dominate governments globally. The system, however, contains the seeds of its own destruction. The source of its power is also a fatal design flaw.

The flaw is that banks advance “bank credit” that must be paid back with interest, continually requiring more money to be repaid than was created as loans; and the only way to get additional money from the private banking system is to take out yet more loans, at interest. The system is, in effect, a pyramid scheme. When the banks run out of borrowers to support the pyramid, it must collapse; and we are nearing that point today.

There are more sustainable ways to run a banking and credit system, as will be shown…

Ellen Brown does indeed proceed to show how this can (and should) be done. Read all about it Here.

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