The problem is banks are soaking up productivity by issuing money ahead of wealth creation. This sees them appropriate gains. It also has a distortion effect because people doing work who are clever see that there is no point working to create wealth as the real gains are to be made in appropriating wealth. Here you get eventually stagnation as all your physics PhDs are working for investment banks trying to arbitrage fiat tokens from .... PhDs in other investment banks.
Growth can and will return when the rentiers are lanced with land value tax, as the primary vector for money creation by banks is lending against land. When this ends growth returns.
Growth can and will return when the rentiers are lanced with land value tax, as the primary vector for money creation by banks is lending against land. When this ends growth returns.