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To: GraceZ who wrote (69084)	2/18/2001 7:49:14 PM
From: jjetstream	Read Replies (1) \| Respond to of 436258

<Debt is only really a problem when it is used for consumption> Grace that is a very valid point...I have a small biz, and a couple of the supplies that are used in the day to day activities of my biz can be purchased at Sam's (quite cheaply I might add).....for years Sam's would not accept credit cards as a form of payment...now however I see many people paying for their, groceries with a credit card....very scary indeed....

To: GraceZ who wrote (69084)	2/18/2001 10:16:43 PM
From: Ilaine	Read Replies (3) \| Respond to of 436258

>>If debt is used for productive assets it creates money.<< Excellent, but only an entrepreneur really understands this. Coincidentally, I was trying to explain earlier tonight to my younger son why the the money supply increases. Trying to explain how debt is monetized, and why, went over his head. But when I read to him the salient portions of your post, I think he got it. Maybe. The example I was trying was, suppose I charge John $500 for a divorce, and John charges Sam $500 to work on his car, and Sam charges Mary $500 for a weeks worth of secretarial work, and Mary charges me $500 for furniture, how much money are we talking about? He said $500. The older one said, and I agree, we're talking about $2000. I have not seen the magical, mystifying effect of money any clearer than in the printing industry. It's like a license to print money, you're right.

To: GraceZ who wrote (69084)	2/18/2001 10:48:54 PM
From: Bid Buster	Read Replies (1) \| Respond to of 436258

Debt is only really a problem when it is used for consumption or non-productive assets. like i said we have a nation of sheep.. you have eyes but can not see. yes you can make capitol expenditures in biz to generate profits. but what about the frivlious decadence of 12,000 sq ft homes with copper roofs?, suv's, right on down to color coordinated extention cords? and lets not forget another debt instrument, the corporate bond ie; amzn,xrx or irid sorry my clown friend, the vast majority of debt in this country IS for consumption and non productive assets. i stand by what i believe, the money has to come from some where to pay the interest and that somewhere is off the treasuries printing press