Dawn J. Bennett, founder and CEO of Bennett Group Financial Services, recently interviewed Richard Duncan, an author and financial analyst, on her talk show Financial Myth Busting with Dawn J. Bennett. Duncan specializes in fiat currencies and macro policy and has written many books, including The Breakdown of the Paper Money Economy, The Corruption of Capitalism, and the Dollar Crisis: Causes, Consequences, Cures.
In his video newsletter “Macro Watch”, Duncan recently reported that the global economy is in $300 trillion in debt, after the global economy moved to a debt fueled-growth strategy over the last three decades. Duncan explains this statement further during his interview with Dawn J. Bennett.
According to Duncan, the economic system has changed in fundamental ways from 1968 and 1971, when dollars stopped being back by gold. The economic system changed from capitalism to what he calls “creditism”. How this economic system operated is businessmen would invest; some would make a profit, save the profit and accumulate capital, and repeat the process. The system was driven by investment and saving. Today, the system works in an entirely different, explained Duncan.
“Our system is driven by credit creation, and consumption, and more credit creation, and more consumption,” he said. “That has generated fabulous economic growth, at least up until 2008. It ushered in the age of globalization, and it created the prosperity that we’ve enjoyed all of our lives, really up until 2008. The problem with that is that in 2008 we reached the point where the private sector, the average Americans, just couldn’t continue taking on any more debt. At that point they started defaulting, and this global credit bubble that resulted from creditism started to implode.”
Duncan is predicting this will lead to economic collapse. According to Duncan, the U.S. government has been managing the U.S. economy at least since World War II, so for about 76 years now, and have not been doing a very good job.
“We’ve reached the point now where this creditism can’t continue to create economic growth because the private sector is too heavily in debt,” he said. “If the government sector doesn’t continue borrowing and spending to drive the economy then there is a very real danger that we will collapse into a catastrophic global great depression again.”
For Dawn Bennett’s complete interview with Richard Duncan, click here.