First of all we need to establish one thing—credit is fictitious capital or wealth, if you will. Simply put the sale of a commodity consists of —the exchange of the commodity for the commodity of money. The seller may accept a promise of payment in the future which then becomes—the seller is the creditor and the buyer the debtor.

Credit for too long has been accepted in lieu of cash or money. The growth of the use of credit has created an unstable element within the economy. This involves an unstable chain of interdependences since each agent depends on payment by their debtors so they may pay their creditors. Once a kink forms in this chain it begins to amplify exponentially. The economic crisis the US is facing now is just such a situation. It all began with the foreclosures and mushroomed from there.

Each of the credit crises precipitates the wholesale destruction of weaker capitals which in turn will force the government to react to save the weaker capital. Just read or listen to the economic news of the day, this is happening as I write. AS it stands today there are NO natural recovery mechanism for the problems, the government MUST react and react quickly.

Now the problem is, as I see it, have arisen because of accumulation, insufficient competition and excessive greed by Wall Street speculators. Unfortunately, they cannot be managed away by Fed intervention, no matter how progressive or populist they may be. Why? First of all, to solve this problem there will have to be an attack on domestic programs, basically attacking the middle class or most notably the working class.

The economic crises of today are because of the addiction to living above ones means or on credit. Also, since income and such are stagnant the working class is forced to maintain their lifestyle through the use of credit.