[lemura]

this is what happens when everything is backed by debts

Debt is merely a function of demand for goods & services; money supply is merely a function of the debt issued to supply this demand. Who's to say that a zero based savings economy isn't the next wave in the evolution of commercial activity?

The key is, has been, and will always be, inflation. Keep inflation in check, and wealth has to be created via new goods and services. Look at the construction industry: everyone is focusing on the rise in real estate prices, but seemingly ignoring the transformation of many previously blighted areas.

[thinking4me]

everyone is focusing on the rise in real estate prices, but seemingly ignoring the transformation of many previously blighted areas.


yeah, exactly... the economy is booming!!!

meanwhile the country goes deeper into debt... Speeches ignore impending U.S. debt disaster No mention of fiscal gap estimated as high as $72 trillion Carolyn Lochhead, Chronicle Washington Bureau

I've got an idea: we're going to borrow as much as necessary, this will create the biggest boom ever but will be able to pay ALL OUR DEBTS... how about that???


HAHAAAAAA!!! SORRY... hope you see the flaw of your argument here.

"It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford

[Protagoras]

Fundamental economics escapes the vast majority.

Just yesterday, our "conservative" President made a statement right out of Keynes handbook.