DDP Newsletter, May 2013, Vol. XXXI, No. 3
The world is not running out of oil or other fuels. But it is running out of money. Money is credit, and credit relies on confidence. “There is not enough confidence in the financial system to supply the world with the money it needs. Since the credit crash of 2008, “credit and money have been withdrawn from the system in such staggering amounts that international trade can no longer grow,” writes “Numerian” on Jan 2, 2012 (http://tinyurl.com/8a6ougq).
“The world’s central banks are playing a rear guard action by acting as lender of last resort to banks that no longer trust each other and have stopped lending in the interbank market. As liquidity flows out from the system, the rottenness that has corrupted the foundations of global finance is now exposed for all to see.” Continue reading “Peak Money”