According to 2019 Federal Reserve numbers, Americans in the United States hold 1.04 trillion dollars in credit card debt. And that liability is growing coupled with Student Loan debt which has reached 1.5 trillion dollars this year. We are looking at an unprecedented time when the flaws in the fractional banking system have created fractures so deep and overwhelming that the entire Western economy was almost toppled by the financial crisis of 2008.
That same system has allowed credit and student loan debt to balloon to over 2.54 Trillion dollars collectively. While staggering, many are unaware of another looming threat of commercial/residential loan debt. A report from MarketPlace.org indicates that US Mortgage debt has risen to a whopping 8.8 Trillion dollars. We are looking at Americans carrying nearly 10 Trillion dollars in debt. It is key to understand that these debts are mostly imaginary, because the banks never had the funds to loan. Americans, like many developing nations are carrying around staggering debt that was loaned by banks on funds that do not exist.
Started by the powerful Medici Family in 1400s, Fractal banking is a flawed system that allows a lender to issue promissory notes without the actual funds. It is the equivalent of loaning someone $20 when you only have $10. Banks are able to do this because of “banknotes” and electronic fund transfers mask the fact that the banks do not have the actual funds to give. These flawed systems cosigned by law, allow banking institutions to legally write you a bad check.
But even if those numbers threaten individual Americans, a large 4.4 trillion dollar commercial real estate bubble is amassing which will eventually threaten large, historic investment houses and institutions.Even in gentrified or urban renewal areas, many of these commercial areas are unoccupied, which means rents are not being collected.A brief visit to a U.S. suburb and you will find abandoned mini-malls, half-occupied corporate parks and empty office buildings.The strangulation of wealth through debt is creating a bubble that reveals the flaws of the fractal system and the antiquated central banking system.
In a system that “crashes” periodically—now quite often, you would assume that world leaders, businesses and nations would fix such an obviously flawed system. It was the fractal banking system that destroyed the powerful Medici Bank and once again remains a fault line ready to erupt and rock the world system. Some nations are getting smarter, by backing their currency with real value and finding ways to create sustainable trading methods that create long term growth and insulate against manipulation and geopolitical unrest.