The debt crisis exploded in 2008, and its shock waves have lost none of their destructiveness.
The fault largely lies with governments whose frenzied borrowing and overheating printing presses turn currencies into Monopoly money.
This madness started in the run-up to the First World War, when most countries went off the gold standard enabling their governments to become players in the economic game, rather than its referees. The results were spectacular.
In the last 50 years of the nineteenth century the British pound underwent a total inflation of 10 percent.
The corresponding figure for the last 50 years of the twentieth century was an economy-busting, soul-destroying 2,200 percent.
That much is well known and understood. However, neither governments nor their quasi-independent central banks are the only culprits.
For they aren’t the only inflators of the money supply – private institutions do their fair share.
Various JP Morgan outfits take pride of place in this activity, which manifestly runs against the constitution of most Western states.
Private companies aren’t supposed to assume the functions of elected governments, yet this is precisely what JP Morgan has been doing for the better part of a century.
By their own standards, they’ve done a good job, worth billions in bonuses. But by our standards they, and their able colleagues, have brought the world to the brink of disaster.
By way of historical background, it was Morgan bankers who were the principal architects of the Federal Reserve system, masterminding its strategic offensive against the gold standard and thus enabling the state to get those presses in high gear.
And it was the House of Morgan that floated war loans for Britain, effectively breaking US neutrality and financing a steady flow of supplies across the Atlantic.
That left the Kaiser’s Germany no choice but to launch unrestricted submarine warfare, dragging America into the war.
This was Morgan’s entry into global politics, inseparable from global economics.
Since then their bankers have designed many sophisticated weapons of mass economic destruction.
It was mainly those weapons that triggered off the current explosion and set up the next one, of a much higher yield.
Prime among such weapons are various schemes of increasing the money supply through the derivatives markets.
The spirit behind such technically legal tricks is roughly the same as that animating illegal Ponzi schemes, of the kind that landed Bernie Madoff in prison for a surreal term