“Except if you did get rid of the debt the effect on the rest of the money in circulation would be more traumatic. that is the fundamental problem with FIAT money.”
Yes. This is why I think the gold bugs have it a bit wrong. The problem with fiat money is not so much that it has no intrinsic value, it’s that it is subject to huge increases or decreases based on the amount of debt out there. You can have a huge cascading effect based on really not that much going on. The proverbial butterfly flapping it’s wings in the rainforest leading to a hurricane.
Debt is a bad idea from a personal perspective. It’s also the key to changing the way the monetary system works.
Agreed - us (me included, painfully so) gold bugs are wrong because the size of the fiat money and debt equivalents has grown so much larger, and become so much more integral to international finance, that at least until the collapse of our international financial system (cockroaches will be celebrating another victory on that day), gold has become a puny relic, like a butterfly blown about in a hurricane
(to twist your metaphor in a way you perhaps did not intend.)