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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: Hawkmoon who wrote (108815)6/21/2010 10:19:40 AM
From: FreedomForAll3 Recommendations  Read Replies (2) of 110194
 
With or without fractional reserve banking, there is not enough money in this system to pay off the debt and the interest on the debt, until more debt is created which creates more money in the system to pay earlier debts, but not to pay interest and principle on the latest debt. It is a ponzi scheme that must eventually fail.
That same problem exists for a system based on any limited commodity used as money, e.g., gold or silver. Using gold as money does make it more difficult for the currency to be debased, but the payback dilemma still exists.
I think that people do deserve a return on capital, but the system must have a sane method to provide money tokens to do so.
The current system does not have this, and in addition it wastes capital rewarding people who do nothing (bankers), instead of rewarding producers and innovators.
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