This literary device is an example of "foreshadowing" - an indication of how future events will be effected.
A monarchy is a type of government ruled by a hereditary ruler, such as a king or queen. A theocracy, on the other hand, is a system where a small group of religious leaders rule in the name of a god. A monarch who claims the divine right of kings uses their religion to justify their position of power. (See image: Courtesy of tvtropes.org) A monarch can claim to rule by god's will, but doesn't have to be a religious leader.
One economic problem was that businesses were not as healthy. People started losing money because they had numerous investors and they couldn't find a way to pay them back because they couldn't earn as much as they received in investments which caused investors to lose money in reality which harmed the businesses.
Another is that the consumers were indebted more than it was normal. People were spending more and more money and they in reality didn't have this money earned so the debt started increasing dramatically and when they couldn't pay back the debts the bubble burst and an economic crisis was introduced.
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