The underlying cause of the Global Financial Crisis (GFC) in 2008 was cheap money. The root cause of cheap money was global deflation emanating from mismatched supply and demand aka. poverty. The "cure" for the GFC was to make money cheaper by further marginalizing global labour.
We "fixed" the problem by making it much bigger:
Since 2007, global debt has grown faster than global GDP, which is amazing considering the fact that global debt IS GDP. Picture what would happen to global GDP if global debt merely stopped rising, much less imploded.
In 2008, the locus of implosion was U.S. mortgage lenders and investment banks. Everything was going fine until the Federal Reserve raised rates 17 times in a row, imploding the marginal borrower aka. "subprime". Today the locus of implosion is sovereign nations that have extensive dollar liabilities. Because their debt service costs are rising as a function of the dollar rally in conjunction with Fed tightening.
The signature of a Third World country is a nation in which schemes and frauds are rampant.
Why? Because real work doesn't pay a living wage, hence people turn to zero sum confidence schemes. This is the problem with the United States in a nutshell. While we were told that social programs are bad because they disincentivize work, those same people were busily disincentivizing work via mass layoffs and strip-mined benefits, to feed the Black Hole of corporate profit.
Now, we have a zero sum 'Conomy based solely upon gimmicks, fraud, corruption, inter-generational theft and confidence schemes.
You know what I mean?
"That's right folks, it's more free money. Trump magic."
