Fraudulent Debt

Posted: April 4, 2014 in Economics
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“In 1964,… the US had a total debt load (private and public) of $1 trillion. Today, the economy carries a debt load of $59 trillion.  In 1964, annual US GDP was $656 billion.  Let’s see… today it is about $17 trillion.  Divide $17 trillion by $656 billion and we find that GDP has gone up 26 times – not even half as much as the debt.”  (Debt load up 59x, GDP up 26x).

“Any credit in excess of actual savings is a fraud. It produces a fraudulent boom, which must be followed by a bust. Eventually, the phony credit must go back whence it came.” -Bill Bonner

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