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The Economic Depression - Causes and Solutions

DOI 10.3232/ GCG.2009. V3.N3.05 Credit expansion cannot increase the supply of real goods. It merely brings about a rearrangement. It diverts capital investment away from the course prescribed by the state of economic wealth and market conditions. The boom lacks solid base. It is not real prosperity. It is illusory prosperity. Sooner or later it must become apparent that this economic situation is built on sand.