“When the United States removed
the gold backing from the dollar in 1968, the nature of money changed. The
result was a proliferation of credit that not only transformed the size and
structure of the U.S. economy but also brought about a transformation of the
economic system itself. The production process ceased to be driven by saving
and investment as it had been since before the Industrial Revolution. Instead,
borrowing and consumption began to drive the economic dynamic. Credit creation
replaced capital accumulation as the vital force in the economic system.”
–Richard Duncan, The New
Depression
