I’ve never heard this before. Are you saying that the world economy would crash if we balanced the budget and payed off the debt? And can’t we loan money and not go into debt to do it?
I stand by my prior posting.
Our financial system is crazy, since the onset of the Federal Reserve in 1913 and going off the gold standard in 1971.
The world runs off our currency as the USD is the world’s reserve currency. Other countries need the USD for trade. The USD is *loaned* into existence by the Fed and banks! Crazy! That’s why it is called a “note”. The dollar in your wallet is someone else’s debt. If all debts are extinguished then all dollars disappear and there will be a depression globally as there is no currency. The banks and bankers in 1913 thought up this scheme in order to benefit themselves at the expense of everybody else.
I don’t call the USD “money” because REAL money is a store of value. The USD is not a store of value, having been progressively devalued over the years. Rather, the USD is what is called a currency, used for trades and exchanging but which is not necessarily the same as a store of value.
I hope this helps.