Friday, 4 October 2013

Quote of the Day: The Destructive Consequence of Banks' Creation of Loans

The most serious consequence of banks’ creation of loans is the following: to the extent loans are granted without the corresponding backing of voluntary saving, the real productive structure is inevitably distorted and recurrent economic crises and recessions result.
 Professor Jesús Huerta de Soto (Money, Bank Credit, and Economic Cycles, 3rd ed)

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