| whose generation is the one that inherited the greatest wealth in history |
Ummm no. Her generation inherited (made) the greatest debt in history. It looks like weath from a certain perspective but be assured it is debt.
Are all economic policies flawed;Baddboy'd economic theoryt/heories
by badboy 24 Replies latest watchtower beliefs
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IP_SEC
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hamilcarr
enriched the few, impoverished the many and is now endangering the planet.
No joke, just plain reality. Do I really have to look for the stats?
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stapler99
[quote=Badboy]
Do all economic polices promoting posterity contain the seeds of recession?
[/quote]
No, economic policies promoting unsustainable bubbles not backed up by real wealth contain the seeds of recession.
[quote=IP_SEC]
You are right but for the wrong reason. Capitalism isnt the problem. The growth is in want of debt as our 'economy' is a debt money economy. In order for our 'economy' to grow there must be an exponecial growth in debt=an exponencial growth in borrowing debt notes to 'pay' (DISCHARGE) for things we dont need. (Sorry for the run on sentence)
THE PROBLEM IS THE DEBT MONEY SYSTEM.
[/quote]
I don't think that's correct, IP_SEC. This theory is quite common, and I believe it originated with a political philosophy called "Social Credit" in the 1920's (http://en.wikipedia.org/wiki/Social_Credit), however it seems to stem from an incorrect understanding of fractional reserve banking. There is no gap between the debt and the money supply needed to pay it off, requiring even more debt. I think that the mistake people have made is thinking that all the money is debt. But the expanded money supply of debt is backed by monetary base, which is what is used in transactions between banks. This monetary base can be used multiple times to pay off debt, and is not destroyed in doing so. If in fact, all the debts were paid off, we would still have a money supply, just 1/10th or whatever the multiplier is of what it currently. That is assuming you want to pay off all debts, which isn't really necessary. No one's being forced to get into debt - in most cases the debt is desired by both lender and borrower - and the economy doesn't need debt, apart from the decisions of the individuals in the economy deciding that they want to get into debt or not.
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stapler99
Can someone tell me how to quote posts properly?
