Re: Fatal Flaw in Logic of the Crash Course?
Reading through this thread made me finally register on this site. Great talk, smart peeps.
It seems that a factor is being left out of this conversation which woupiestek just touched on when remarking "To maintain a gold reserve or to mint the gold, the banks have to spend money on a regular basis.".
Anything we place value on needs an INVESTMENT to keep its value. Money, house, car, health, relationship, etc. That investment analogous to INTEREST.
Now, when you borrow to get something (spend more than you have, time, money, calories) you pay INTEREST twice, once on the loan and once on the upkeep, and you have to do even more work to keep the object perceived value. It is like having an affair; so much more work, but so much more valuable. :^)
The economy is, and will crash, because we are running out of energy. We have become tired chasing our desires and let our investments fail. We want the affair, but not the work. So we are getting caught with their pants around our ankles. We are more likely to pay interest on on loans then we are to invest in what we already own, always thinking there is something better.
Money is debt because life is debt. Humans have just turned money into a representation of life. The economy is doomed becuase each one of us is doomed. As J. Krishnamurti would say. "We are the world, and the world is us."