The credit card effect
The credit card effect (as opposed to 'the butterfly effect') - one persons (credit card) debt could bankrupt a country - or even the world's economy.
This is the perfect economic fractal example where dangerous massive debt burdens have migrated from the small scale (individual) to the large scale (country); the principle or idea (of debt) is the same, the scale is irrelevant.
I explained the world's economic problems to my 10 year old daughter by reducing the problem to her scale - it was very easy.
Today - through the mechanism of (moral hazard) bank bail-outs - it is countries that are getting burdened.
Where to next?
This is the perfect storm.'
This is the perfect economic fractal example where dangerous massive debt burdens have migrated from the small scale (individual) to the large scale (country); the principle or idea (of debt) is the same, the scale is irrelevant.
I explained the world's economic problems to my 10 year old daughter by reducing the problem to her scale - it was very easy.
Today - through the mechanism of (moral hazard) bank bail-outs - it is countries that are getting burdened.
Where to next?
This is the perfect storm.'
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