[Chrysalis]

the thing is it creates a false economy.

a business could run for years surviving just on overdraft's and thats what many were doing, and hence a load going bust when the bank wanted it smoney back.

debt to increase liquid assets is fine when the company has the ability to pay it back, but that wasnt the case.

you also said yourself inflation is a problem, and creating money via debts is a prime cause of inflation as everytime money is created then the value of it drops.