Hashed
In today’s world, 5% of all money is created by governments in the form of cash in circulation. The other 95% of money is created by commercial banks by extending credit to borrowers. Thus, money does not represent value, it represents debt. The more debt, the more money. Unless the overall money supply keeps growing there will never be enough money to pay off all loans plus interest. Yet, repaying debt destroys money. Debt, therefore, powers modern societies and puts enormous pressure on governments to push for economic growth at the expense of everything else. Which is why many governments are reluctant to take necessary action on the existential threat of climate change because such policies might slow down monetary growth. It’s the ultimate pyramid scheme and it is unsustainable. The debt-pocalypse, the credit crash, is coming. Unless.
