In other words–anyone who can borrow $100 million at low rates of interest is instantly wealthy because they can outbid everyone who has to pay higher rates to buy productive real assets.
This is why our system is broken: cheap credit has enabled the rich to become immensely richer while producing nothing of value–no additional goods or services have been produced by these financier skims.
– Charles Hugh Smith, “Why Our System Is Broken: Cheap Credit Is King”