Part V: Cracks

Crack—a fissure without a complete separation of the parts, also failure or a break with a loud sudden sound.

The global financial crisis that began in 2006/7, commencing with problems in the U.S. subprime mortgage market, exposed the deep-seated problems in the “extreme money economy.”

Economic growth and prosperity were based on excessive debt and speculation. Individual wealth had been based on borrowing against future gains from investments. Savings were inadequate to provide for old age. Company profits had been exaggerated by demand from artificial consumption based on borrowing and financial tricks. Entire countries had tried, unsuccessfully, to financialize their way to higher living standards.

The economic and financial models were deeply flawed and had failed. The available tools and knowledge were insufficient to manage the crisis and restore the health of the global economy.