[hattmall]

Capitalism begins to break down when the primary driver of purchasing power is availability of debt. Long term debt is particularly antithetical to the efficiencies promoted by a free market.

Add on the fact that a quasi-government body is the primary provider of that debt and not just through the central banking system but in many cases direct to consumers.

[yossarian1408]

Sounds less like capitalism breaking down and more like a regulatory issue.. could fractional reserve banking exist in a competitive banking sector w/o a central bank?