submitted by jwithrow.
Journal of a Wayward Philosopher
A Look at the Modern Credit System
June 22, 2015
Emerald Isle, NC
The S&P closed out Friday at $2,110. Gold closed at $1,202 per ounce. Oil checked out at $60 per barrel. The 10-year Treasury rate closed at 2.27%, and bitcoin is trading around $247 per BTC.
Dear Journal,
I am writing this entry from North Carolina’s glorious Crystal Coast. My family has been making a week-long trip to Emerald Isle every summer since the 1970’s. Back then the island consisted of a small convenience store, Clyde’s Shrimp Shack, and a few dinky cottages by the beach.
The Withrow clan still rents a couple beach-front cottages each summer but the cottages have magically transformed. In the early days, the luxury cottages had a spiral staircase leading up to a second floor with an extra bedroom. The average cottages offered a few bedrooms on the ground level with no spiral staircase. You now find three story luxury homes towering over the beach where the dinky cottages or empty lots once stood.
To most eyes this looks like progress. Maybe it is. However, my eyes only see evidence of the exponential credit expansion that has been taking place for more than forty years now. I feel slightly hypocritical as I enjoy a cold beverage from the the third story balcony watching the waves crash down upon the beach below. You see, I know how this all got here. I know how this went from a dinky little cottage to a three-story luxury home with a balcony overlooking the sea. Continue reading “A Look at the Modern Credit System”