>>I seriously doubt you pay the interest on your mortgage by borrowing additional money (who knows you might). You pay the interest by creating value that gets exchanged for money.<<
your view is micro. that view is misleading - and the bankers know that is how most people view the world, hence, their scam has gone basically undetected for decades.
the proper view is macro. it isn't about what one person does, it is about what SOCIETY does. SOCIETY pays off previous principle and interest by adding marginal debt.
that's why this chart looks as it does...
market-ticker.denninger.net
>>You don't need a bank or debt or even fractional lending to create additional "money" in an economy. Many historical instances of money existed far in advance of all these things.<<
your view is again incorrect. i'm not talking about rome's monetary system, i'm talking about OUR MONETARY SYSTEM. this is the way OUR MONETARY SYSTEM IS SET UP!
>>Once you understand how it is that money grows in the absence of a modern banking system then you can understand how it is that debt isn't necessary to create additional money even though this is the mechanism we use to add additional units in the US.<<
so you agree with me that, in our current system, new money is new debt. perfect. it seems like you think i'm saying the system *must* run this way.
ABSOLUTELY NOT! THE SYSTEM IS A FRAUD! banksters set it up to rip off society for personal gain! IT HAS TO GO!
>>This is simply a mechanism and this mechanism doesn't create the value it represents, we do that. Even brand new printed currency sitting in a Reserve Bank has zero value until it is exchanged for something of value (our labor, our goods, redemption of savings etc.). IOW money doesn't become money until it is exchanged for something of value.<<
i don't see where zen style theory applies - my discussion is all about practical application.
>>Additional fiat money could be<<
BUT ISN'T!
>>created or minted in response to an increase in demand for savings and/or for increases in transactional balances due to a larger economy. Increases in money supply does not require additional debt.<<
i've never claimed it was a requirement. what i did claim was that this how OUR SYSTEM CURRENTLY WORKS.
>>Interest is just a form of return on capital which happens to be money.<<
legally mandated to be money.
>>Surely you can understand that return on capital that isn't money capital doesn't require debt or even a bank?<<
yes. surely, you have completely misunderstood what i'm advocating.
i'm glad we agree that, UNDER OUR CURRENT SYSTEM, money is created by the issuance of debt. new debt requires additional money to pay back previous principle plus interest.
this is a feedback loop that amplifies UNTIL IT EXPLODES! the EXPLOSION is a mathematical certainty.
the current system is a fraud designed to transfer wealth from the citizens to the debt holding bankers, surely you can understand that.
why are you arguing my points again?
it seems to me you agree with my positions. if not, what exact positions don't you agree with? |
