monetary theory

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davefairtex
By davefairtex on Mon, Jun 16, 2014 - 9:02am

Enough money to pay interest? Steve Keen says "yes"

So one of the surprising things I learned from the Money from Nothing video is that when money is created through debt, enough money was created to repay principal, but not the interest.  This made logical sense to me, and so I held this as an article of faith right up until yesterday, when I watched the following explanation from Steve Keen in a talk he gave sometime back in 2012: 

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Bitcoin interest group

Bitcoins are a form of digital currency that can be transacted peer-to-peer, have cryptography at their digital DNA heart, and have a mechanism of creation (digital mining by running the creation software on a powerful computer) that makes their scarcity profile very much like that of a finite natural resource...