“Our present money system can only function in a growing economy. Money is created as interest-bearing debt: it only comes into being when someone promises to pay back even more of it.

Therefore, there is always more debt than there is money.

In a growth economy that is not a problem, because new money (and new debt) is constantly lent into existence so that existing debt can be repaid. But when growth slows, good lending opportunities become scarce. Indebtedness rises faster than income, debt service becomes more difficult, bankruptcies and layoffs rise.

We are at the end of an era. No one seriously believes that we will grow ourselves out of debt again. There is an alternative.”

Read We can’t grow ourselves out of debt, no matter what the Federal Reserve does