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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Skeeter Bug who wrote (233930)12/22/2009 2:12:19 PM
From: GraceZRead Replies (1) of 306849
 
Our point of disagreement is that you implied that the only way interest on current debt can be paid is to increase debt and this is simply not true.

Interest could be paid down by people simply reducing their desire to hold money, IOW from their savings. Debts can also be discharged and written off as is happening now.

The thing you don't seem to understand is that money is used over and over again, it isn't consumed by interest payments or any other use of money capital.
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