When debt growth outpaces productive growth, the system enters a dangerous feedback loop where new debt is needed just to service old debt. At some point, the leverage becomes unsustainable—leading to either a deflationary collapse or a rapid devaluation of the currency.

History is full of examples of this dynamic, from the Roman Empire’s debasement of the denarius to Weimar Germany’s hyperinflation. The modern financial system, fueled by central bank intervention and artificial liquidity, is playing out a similar script. The only question is how long it can be stretched before the breaking point.

#Bitcoin fixes this.