? Dr. Hans F. Sennholz was professor and chairman of the department of economics at Grove City Colleg, wrote an essay about the world currencies flooding the world markets. Below are a few excerpts from his essay.?
“Rates that are lower than market rates promptly increase the demand for credit. With all recent rates below the market rate it cannot be surprising that total American debt has surged by several trillion dollars. Last year, household debt alone rose by more than one trillion dollars. The federal government itself has been adding more than two billion every day.”
“ Such credit expansion, unsupported by genuine savings and capital formation, generates illusionary gains making people believe that they are more prosperous than they actually are.”
“This economist is bracing for a gradual increase of political controls over economic life, leading to countless maladjustments, distortions, and stagnations. But this trend of policy and its harmful effects is contravened by the world-wide movement toward globalization.”