Credit is not savings.

It is a claim created against the future.

In modern systems, credit is issued first and funded later. Banks do not lend deposits. They create new money when they issue loans. The borrower receives purchasing power that did not previously exist. The liability is pushed forward in time.

This process expands the money supply without increasing real goods or productivity.

At small scale, credit coordinates investment.

At large scale, it distorts prices.

When credit is cheap and abundant:

• Asset prices rise before wages

• Risk is mispriced

• Debt grows faster than income

• Consumption is pulled forward

• Future output is assumed, not earned

This is not growth. It is temporal displacement.

The system requires continual expansion to remain solvent. Old debt is serviced by new credit. If expansion slows, defaults appear. If expansion stops, the system contracts.

There is no equilibrium. Only acceleration or collapse.

Because credit is created without hard limits, it concentrates power in institutions that can issue it. Those closest to issuance benefit first. Those furthest away pay later through inflation and higher taxes.

This is why inflation is described as a “mystery.”

Its cause is structural.

Sound money constrains credit.

Fiat money amplifies it.

Bitcoin does not prohibit lending.

It prohibits credit creation from nothing.

Loans must come from saved capital. Risk must be priced. Time preference must be real.

This is the difference between money that measures value

and money that manufactures claims.

One preserves reality.

The other replaces it with promises.

#Bitcoin #Credit #Finance #CentralBanking