00:00Once governments recognized the power of credit, they embraced it.
00:03Instead of funding wars and infrastructure through taxes alone, they began issuing bonds.
00:08Investors would lend money to the state, expecting repayment with interest.
00:12This created a powerful cycle.
00:14Governments borrowed from banks.
00:16Banks created money through loans.
00:18Citizens paid taxes to repay those debts.
00:21At first, the system appeared stable.
00:23But there was a hidden mathematical problem.
00:25When banks create money as loans, they create the principal, but not the interest needed to repay it.
00:31That means the system always requires new borrowing to cover old debts.
00:35In other words, debt must grow forever.
00:38And that growth requires new borrowers.
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