Didn't say that they did. The Fed has to do it.
Looks like the Fed held M1 steady for the 3 years in the above graph. Are you claiming no one could pay off any debt because the Fed didn't create the money for the interest?
Didn't say that they did. The Fed has to do it.
"Every month I pay my mortgage and I haven't created any new debt to do it."
Didn't say you did. The Fed has to do it.
" Sorry."
Indeed.
Didn't say that they did. The Fed has to do it.
Looks like the Fed held M1 steady for the 3 years in the above graph. Are you claiming no one could pay off any debt because the Fed didn't create the money for the interest?
And the sad thing? It's not even that complicated. Anyone with a medical, engineering, math, accounting or hard science degree can easily grasp these fundamentals within 10 minutes.
But they don't because they're too busy pursuing the rigorous demands of their respective professions.
They don't say banking is boring for nothing. It's why bankers seem so devoid of life. All this amazing wealth for practically little effort, other than constantly running a con upon fear of being caught out.
Keep trying with your simple example; I've found it works as well if I get cajoled into trying to explain. If I borrow $100 dollars @ 5%, where do I get the $5 to pay the interest if the money supply is fixed?
In a FRB fiat system, money is credit, therefore credit must continually expand in order to provide the add'l money necessary to pay interest on the old balance. A beautiful closed loop absolutely dependent on inflation.
The way to bring this mofo down is deflation. It may not happen in 2010, but as the sheep discover the power of deflation to break our bonds, perhaps one day a leader will actually run on a platform advocating such a measure.