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There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.
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Chapter XX: Interest, Credit Expansion, The Trade Cycle, § 8 : The Monetary or Circulation Theory of the Trade Cycle

 

Ludwig von Mises

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Since the eighteenth century the immense expansion of the worlds wealth has come about as a result of a correspondingly immense expansion of credit, which in turn has demanded increasingly stupendous suspensions of disbelief.

 

Lewis H. Lapham

 

Credit expansion can bring about a temporary boom. But such a fictitious prosperity must end in a general depression of trade, a slump.

 

Ludwig von Mises

 

Now Tom was - the hell with that, he said to himself. It is something that happens to everybody. I should know about that by now. It is the only thing that is really final, though.
How do you know that? he asked himself. Going away can be final. Walking out the door can be final. Any form of real betrayal can be final. Dishonesty can be final. Selling out is final. But you are just talking now. Death is what is really final.

 

Ernest Hemingway

 

Voluntary taxation, far from impairing the "State's" credit, would strengthen it. In the first place, the simplification of its functions would greatly reduce, and perhaps entirely abolish, its need to borrow, and the power to borrow is generally inversely proportional to the steadiness of the need. It is usually the inveterate borrower who lacks credit. In the second place, the power of the State to repudiate, and still continue its business, is dependent upon its power of compulsory taxation. It knows that, when it can no longer borrow, it can at least tax its citizens up to the limit of revolution. In the third place, the State is trusted, not because it is over and above individuals, but because the lender presumes that it desires to maintain its credit and will therefore pay its debts. This desire for credit will be stronger in a "State" supported by voluntary taxation than in the State which enforces taxation.

 

Benjamin Tucker

 

Propositions prey upon and are grounded upon one another just like living forms. They support one another as plants and animals do; they are based ultimately on credit, or faith, rather than the cash of irrefragable conviction. The whole universe is carried on on the credit system, and if the mutual confidence on which it is based were to collapse, it must itself collapse immediately. Just or unjust, it lives by faith; it is based on vague and impalpable opinion that by some inscrutable process passes into will and action, and is made manifest in matter and in flesh; it is meteoric — suspended in mid-air; it is the baseless fabric of a vision to vast, so vivid, and so gorgeous that no base can seem more broad than such stupendous baselessness, and yet any man can bring it about his ears by being over-curious; when faith fails, a system based on faith fails also.

 

Samuel (novelist Butler