Re: Why the U.S. Need Not Fear a Sovereign Debt Crisis: …
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If all bank-initiated debt created a corresponding amount of money, and vice-versa (which I believe we both agree with), then the amount of debt and the money stock should always be equal
Until time and interest kick in on borrowed money. Then the debt grows but not the money supply.
If our money stock is less than our debt, by any amount, then your claim that all money is debt can only be true if not all debt is money. If not all debt is money, then where did it come from?
Basicaly we agree here except I don’t claim that all debt is money but all money only goes into circulation as a debt to someone.
All money is debt but not all debt is money because once time and interest kick in on borrowed money (the only kind in this system) the debt grows but not the money supply. This is why we have an approximate money supply of 8 trillion and a total debt of around 60 trillion.
I’ve wrote keen a simple question that I couldn’t find an answer to on his website. I’m awaiting his response.