What's the problem with the world economy? It's debt -- too much personal debt -- too much corporate debt -- and most importantly, too much government debt.
"People have a natural tendency to want to spend now and pay later. They will usually take any type of loans offered. It's the same for governments. If governments can spend by borrowing, they will do it. What's government's option; anger the voters in the here and now by having to raise taxes immediately to cover their reckless spending to get themselves re-elected? No way! If loans are offered, governments will always choose borrowing.
The problem is that debt carries interest and the interest is strangling the life out of the economy of every nation on earth.
But most importantly, it's not just the amount of interest paid to the banks - those who give the loans -- it's the control over political process this debt gives the banks. We can never fix the instability in the world economic system until we forbid government borrowing.
Why? Because as Proverbs warns us:
Economic instability always favors the banks and financial speculators. Economic stability always favors we, the people and the cause of human freedom. If banks are in control of the money, there is NO WAY they will ever create a stable system.
This will come as a surprise to most people, but today nations do not control their national money supply. Today, most money is created by banks -- as loans. It's not what backs the money that is important. It is who is controlling the quantity. Today, banks are in complete control of the quantity of the money in every nation. As a result banks have seized control of the entire democratic process and will, by this seizure, reverse humanity's thousand-year march towards freedom.
The good news is that it doesn't need to be this way. Banks don't need to be in control. Governments don't need to borrow. Governments don't need a national debt.
This is a relatively recent phenomenon. As long as we allow government borrowing -- the cancer at the core of all our economic problems -- we will never return governments to true democratic republics. They will all be just shams -- fakes -- appearing to go through the motions of free elections when in reality the big banks have effective control over the democratic process. This means that no government which borrows from banks can ever pass effective legislation to reverse this usurpation of humanity's quest for political freedom.