“The US economy reached a turning point in the 1980s. Natural, healthy, sustainable growth gave way to credit-boosted phony growth. The ‘growth’ of the last 30 years was not like the growth of the 30 years before it. It was not based on rising productivity, increased wages and real capital formation. Wages stagnated. The only way people could increase their standards of living was by spending money they didn’t have. That’s where the credit came in, made possible by America’s post-1971 flexible paper money system. Spending money you don’t have is one of those things that economist Herb Stein had in mind when he said, ‘When something can’t go on forever, it will stop.'”
http://www.billbonnersdiary.com/articles/bonner-credit-cure.html
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