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To: arrogantsob

“Credit is an inseperable element of Capitalism.”

Do you mean “debt”?

America is no longer a creditor nation. We haven’t been for almost 30 years, I believe.

SAVINGS and INVESTMENT are inseparable elements of a free market economy. Debt is for socialists, commies and their fellow travelers at the Fed and Wall Street.


135 posted on 11/30/2008 7:30:40 PM PST by SecAmndmt (Arm yourselves!)
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To: SecAmndmt

There is no debt without credit. Debt wisely used is a valuable tool for capitalists as their balance sheets can tell you.

America did not become a creditor nation for many decades after its founding. But then the word had a meaning since gold was drained from the money supply by an import.

Today we trade pieces of paper for goods and the impact is not the same. Under a floating exchange rate regime the impacts are vastly different.

Socialist nations rarely can use debt since there is no one willing to lend if the loans can be confiscated. Only capitalist nations can obtain huge loans.

Why would anyone save if they cannot lend and make money on their money? You are not describing the real economy.


170 posted on 11/30/2008 10:13:18 PM PST by arrogantsob (Hero vs Zero)
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