Dark clouds seen in the financial world that relies too much on credit

Ateneo Professor on Entrepreneurship

Rizal Philippines
July 23, 2019


From Politico Senator Elizabeth Warren warns of impending economic crash















A US Lady Senator Elizabeth Warren has warned Senate and the rest of the world over the weakness of the financial system:  too much reliance on debt (even by the Fed) of corporate world and of citizens (via credit card)  A little mistake could trigger an avalanche where there could be no escape.  Corporate and individual debt via credit cards is at an all time high.  To supplant the lack of creation of real wealth at USA (due to over reliance on outsourcing and purchase of manufactured goods made in China) banks have been generous to individuals and corporation..    The Dems complain that the wages  have not kept pace with rise in GDP and productivity and hence the gap is filled in by credit...

With the quantitative easing in US and Europe (Fed buying bank assets to pump in liquidity to the market) more money supply, more credit is made available to individuals and corporation.  Thus more debt, more less stability in financial markets..

Banks have created 97% of the money supply.  Not the FED, and this has been uncontrolled.