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Debt = Wealth


TruraBuoy

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HOLA441
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HOLA442

debt is wealth, we have a debt based money system all money is debt. The more debt you have the more money you have. If you need to pay more more interest you create more money either by getting further into debt, printing it, or dropping interest rates. Why cant 'debt' increase for ever, it doesn't mean anything :P

Debt IS wealth ever since the end of the gold standard. I agree with pete stark, this is the way of the world

Edited by moosetea
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HOLA443

Money may be debt, but wealth isn't.

The only wealth of any true value is "things" - land, stuff, skills. Increasing debts doesn't give us any more "things" and so doesn't create any wealth on its own.

However, it can indirectly if e.g. I borrow to buy equipment then use that equipment to make things.

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Guest Parry aka GOD
Money may be debt, but wealth isn't.

The only wealth of any true value is "things" - land, stuff, skills. Increasing debts doesn't give us any more "things" and so doesn't create any wealth on its own.

However, it can indirectly if e.g. I borrow to buy equipment then use that equipment to make things.

Good post. You can't actually print human ingenuity, resource and production.

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Guest DissipatedYouthIsValuable
Good post. You can't actually print human ingenuity, resource and production.

But you can touch her up if she'll let you.

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HOLA4412

Commercially issued debt-based money ensures that the means of exchange is borrowed into existence at interest from profit-motivated issuers.

The non-banking, non-issuing sector of the economy is forced to pay substantially for the existence of a universal means of exchange, a utility which is of course absolutely essential for a modern complex economy.

The size of this cost to productive enterprise may be very roughly approximated by multiplying the size of the money supply (borrowed into circulation) by the interest rate differential between what the issuers charge to lend it minus what they pay when it is deposited back with them.

For the UK a (very rough) guestimate for this might be £2,000,000,000,000 x 5% = £100,000,000,000 p.a.

So, we pay something of the order of £100 billion per year to the commercial banking system for the provision of our debt-based means of exchange, a utility that we could provide collectively debt-free for ourselves at negligible cost.

The above is simplistic and schematic, but I hope that it illustrates one obvious absurdity of our money system.

Source for M4 estimate of £2T: http://www.bankofengland.co.uk/statistics/...rrent/index.htm

Edited by The Spaniard
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HOLA4413
Commercially issued debt-based money ensures that the means of exchange is borrowed into existence at interest from profit-motivated issuers.

If only. They find they can't make a profit because of the housing market. The land market ruins everything because it draws resources away from the productive part of the economy and forces them unproductive part making any sort of profit harder and harder to come by.

People only invest in land to use as a vehicle for taking away from others.

Edited by chefdave
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