The problem with the economy, IMO.
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16-01-2013, 06:18 PM
RE: The problem with the economy, IMO.
(11-01-2013 08:46 AM)Chas Wrote:  
(10-01-2013 05:33 PM)bemore Wrote:  You cannot create new money without creating debt.... this needs to change or we will forever be going around in the circle of depression, growth, depression, growth.

I dont think this recession will ever end. Not for the likes of me (the middle class) anyway.

There is too much debt and them creating more (from QE) is only papering over the cracks.
Of course money and wealth can be created without debt.

I go out to my back yard, dig, discover a vein of gold ore. Voila, wealth, not debt.
Wealth is not only created by debt, that is true up to a point.

However, resources are inevitably finite. Thus there is only a set mount of resources and wealth in the world. Even a resource that renewable does so at a certain rate. Once you dig up all the gold in your back yard, its gone, and the wealth is within the system. More gold won't just suddenly appear.

Wealth is continually destroyed as well. Maintenance cost are extremely high. Natural disasters destroy billions of dollars worth of resources every year.

Meanwhile interest just continues to accumulate to infinite.
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RE: The problem with the economy, IMO. - Diablo - 16-01-2013 06:18 PM
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