What Happens To Credit When Interest Rates Rise

“The biggest political upset in American history” muttered Clintonite George Stephanopoulos repeatedly as the election returns came in. The pundits and the polls had dismissed Trump’s presidential aspirations as a publicity stunt. In July of 2015, the betting markets gave Trump a 5% change of winning the nomination, much less the presidency.

Yet it was around this time that Myrmikan began arguing that Trump’s victory was historically inevitable. The American Constitution was modeled on the Roman Republic, and we all know (or should know) what happened to Rome. As the republic turned to empire, credit levels exploded, widening the gap between rich and poor. A citizenry composed of small landowners was transformed into a plantation system, more efficient but less flexible,...