Applied Understanding: Increasing Indebtedness to Banks [Systems thinking & modelling series]

This is part 24 of a series of articles featuring the book Beyond Connecting the Dots, Modeling for Meaningful Results.

The issue of increasing private and government debt to banks is a major concern after the financial crisis of 2008, as depicted in the following graph:

To understand why our society and government are increasingly indebted to banks we need to understand how our current money system works, and why we need a continuous infusion of new money in a growing economy. “Increasingly Indebted To Banks” investigates the reasons behind this and suggest a possible solution. This model was developed by Dr. Jin Lee, Consultant and Trainer, Malaysia and New York.

Next edition: Applied Understanding: Sustainable Capitalism.

Article sources: Beyond Connecting the Dots, Insight Maker. Reproduced by permission.

Header image source: Beyond Connecting the Dots.