From the Inside Flap
Leverage is an essential part of the financial system, and when used properly it allows businesses to borrow funds to invest in growth and expansion, offers opportunities for reasonably priced housing, and much more. But current imbalances in the ways in which leverage is being used by the rich and powerful in the United States and abroad have led to an alarming situation that threatens to shake the global economy to its core.
In Leverage: How Cheap Money Will Destroy the World, well-known market commentator Karl Denninger literally follows the money, tracing the path it has taken through history and discovers a shocking truththe power to control a nation's purse strings is addictive, and when that power falls into the hands of only a select few, they will pull the levers of government and policy to enrich themselves at the expense of everyone else. History is littered with the stories of collapsed monetary systems, and in every case the debasement of the currency in question, and the disasters that followed, can be directly blamed on excessive leverage, deployed in ill-intentioned and fraudulent ways by the elite.
The current Great Recession is no exception to this rule. It was no accident, and the politicians and monied interests responsible knew that it was coming. Special interests and other influential individuals have always used leverage to enrich themselves while looting the population at large. Eventually the bill always comes due and then we all have to pay.
With Leverage in hand, we can avoid this disaster, and Denninger shows how. With practical, realistic ideas for fixing the financial system, devising sound energy policies, and more, the book stands between us and a debt we simply can't afford.
From the Back Cover
Praise for Leverage
"Karl Denninger is a brilliant economist and someone whose opinions I respect and highly value.Leverage is a remarkable work that I highly recommend to anyone who wants to truly grasp the principles that drive our current economy and the breakdowns that occur when the fundamental mathematical laws governing economies are ignored or obfuscated. Karl has taken a complex macroeconomic system and masterfully pared it down to its essence. Leverage presents this information in an elegantly simple manner that the average high school student would understand, and provides a realistic plan for eliminating the mechanisms that have caused the 'boom and bust' cycles and over-leveraging that have plagued our economy for decades."Adrian Wyllie, Chairman of the Libertarian Party of Florida and syndicated talk radio host
"Karl is something of a rarity in our politicsa Tea Party conservative who believes in strong and effective regulation as a mechanism towards reducing excessive leverage in our economy. He spares no one in this discussion of a financial services industry that colluded with the government to rip off Americans by convincing them that home prices could never decline and that home equity was an ATM. Undergirding all of this was leverage, a useful tool that can become a poison if ingested wrongly or in unwise amounts. Leverage infects our medical system, educational system, and government. I don't agree with everything Karl says. I am after all a liberal, and he is not. But he provides a clear explanation of what is wrong with our economic and political order, and how to fix it."Matt Stoller, American political activist and writer
"Karl Denninger of The Market Ticker® has been a prophetic voice crying in the wilderness, repeatedly warning the world of the dangers of excessive debt. In Leverage, he provides a cogent analysis of the current economic crisis as well as a set of drastic policy prescriptions that may be the U.S. economy's only chance for eventual recovery."Vox Day, author of The Return of the Great Depression
"In 2007, our once lucrative business was collapsing. The harder we worked, the more difficult it became to afford even a modest standard of living. Out of a desperate need for answers, I started researching and that research led me to Karl Denninger's Market Ticker. As a quintessential Jane Six Pack, I knew only the basics of economics and the financial sense my accountant father had instilled in me. What I have learned from Karl over the past four years has changed my family's life, and I credit Karl for saving us from the financial ruin that has devastated many of our friends and extended family. Thankfully, Karl has simplified and condensed all this knowledge and information into one, easy-to-read book; so it won't take you as long as it took me to understand the scope of what we face and how to protect yourself and the people you love. Leverage is both frightening in its reality and hopeful in that it gives us the tools to change our future. Leverage should be in every classroom in America."Stephanie Jasky, founder, FedUpUSA.org