Growing Debt Burden
The flip side of credit is debt, and this is where the problem lies. There’s no limit to how much real money can be created. In a world of real money: each additional currency unit represents additional wealth. But with fiat credit or debt-money it is different. With credit, spending can be increased dramatically. But there is a limit to how much can be borrowed. Eventually, a point is reached where the cash flow dries up to service the interest on the debt. Then the system is insolvent, and broke.