[Repeal The 17th]

Dude...where ya’ been for the last two years?

[piytar]

Wrong. A credit based economy where the generation of wealth funded with debt exceeds the true cost of that debt works. In fact, it works incredibly well.

Sadly, we don’t have that. We have a credit based economy where most of the borrowed money used to fund the fedgov goes to social programs that in fact destroy wealth. That is unsustainable.

It will get BAD.

[catnipman]

“A credit-based financial economy (as opposed to pure cash) depends on an ever-expanding outstanding level of credit for its survival. Without additional credit, interest on previously issued liabilities cannot be paid absent the sale of existing assets, which in turn would lead to a vicious cycle of debt deflation, recession and ultimately depression.”

This is a central thesis of the book, “The Creature from Jekyll Island”.

One of the problems with an economy in which debt substitutes for actual money like ours (the stuff we circulate as money is actually debt - Federal Reserve Notes), is that when you pay back interest, you’re paying it back with some of the debt, debt that gets removed from the economy. If you pay back ALL debt, then there is no “money” left to circulate.

[familyop]

"1. Cross your fingers, credit growth is a necessary but not sufficient condition for economic growth. Economic growth depends on the productive use of credit growth, something that is not occurring."

He did say it. Well said.

[familyop]

About "70 million" people are receiving good incomes but are also steeped in debt, and most of them can't borrow more for big ticket items.

[CPT Clay]

why did i click on this thread again.