Thursday, 6 October 2016

Quote of the Day: On credit creation

 

“What is falsely called insufficient quantity of credit is in reality the scarcity of goods in the world. Credit expansion is an attempt to paper over this problem. Loss-making firms sustained through the issue of fiduciary media are artificial forms of life, consume accumulated savings, and impoverish society. Credit per se does not fund productive activity.”
~ Robert Blumen, from his article ‘Real Bills, Phony Wealth

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