Debt is the surest and shortest path to a global economy. Punishing all actors in local economies but those who are “too big to fail” empowers “too big to fail” systems and “too big to fail” economies. Encouraging debt and the eventual assumption of debt passed on and commodified by increasingly larger political and economic entities creates supraentities built on debt and dedicated to economic regulation.
The assumption of state debts by the Federal government was a major step in the federalization of the United States. The growing assumption of micro and macro debts by the United States government and by international bodies allows for greater macro and micro regulation of economic activities.
Rewarding and promoting irresponsible economic behavior creates debt which creates opportunities for intervention. Individuals are encouraged to engage in irresponsible day to day consumer spending and large scale home and college loans. Financial institutions package irresponsible loans into commodities of debt. Governments bail out financial institutions by amassing even more debt to pay for the bailouts.
The buck keeps getting passed on until everyone is in debt from the micro to the macro level, from the citizen who has his own debts, the annual and the lifelong, and those of the nation which he is also being taxed to repay, up to banks and governments, where the same experts move imaginary numbers around until everyone is in debt and also a debt holder and then a global state of debt has become universalized.