For example, all things being equal, if the quantity of commodities remains constant but the amount of notes in circulation doubles, then the price of each commodity will double also. With a default on any debts, the anarchy and chaos within the balance of payments becomes apparent. Creditors demand their repayments and refuse to lend any further. Credit is reined in, bringing the motion of circulation – and thus production also – to a halt. In short, the lack of credit does not https://wallstreethack.com cause a crisis; the crisis causes a lack of credit. On the one hand, relatively short-term credit is required to overcome bottlenecks in production and maintain the flow and circulation of commodities.