The Federal Reserve Can't Deal With the Debt Crisis

Every recovery since World War II has started from a higher and higher debt level. Banks do not make loans in order to create new means of production, he says. They only lend against assets that are already there that they can foreclose on if the debt can't be paid. The financial system is still basically insolvent; it's being kept alive by zombie bank system keeping zombie corporations afloat with more and more debt.