The UK Debt Crisis – How High Will It Go?

The UK Debt Crisis – How High Will It Go?

Published on 14/01/2013

Why must the debt grow every year?

According to Tyler Durden , in order to keep the debt-servitude paradigm going, you need to continually increase the level of credit and debt will grow in tandem. This is ultimately self serving: if debt is the “fuel” to increase economic activity, interest payments will become larger and larger, until eventually it reaches a point where debt can no longer be increased. This point is known as the Minsky moment–when there is no net benefit to extra debt. So there we have it: in our “creditopia” world, if debt does not expand, the economy cannot grow and jobs cannot be created. [Zero Hedge]

This paradox  can only be resolved through tax increases and spending cuts. What actions are you taking to preserve your wealth?

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