Why not? Do you imagine that we might run out of numbers?But debt can´t continue up forever of course.
If that’s a quote, you should supply attribution. Who are you quoting?Looking for some sources that may explain this better. Some quotes.
THE PRIVATIZED MONEY SYSTEM
"The critical problem is in how and by whom our money is created, which has caused untold suffering, poverty and wars and now even threatens human existence on our planet. Our money system has been privatized. In the current system, money is created as a debt at the instant a bank makes a loan, by simply adding an entry in the ledger -- in other words, created out of thin air. In the current system, this DEBT-MONEY must always be paid back with interest. However, only the money representing the principal of the loan is created; the money for the interest is NEVER CREATED. The money to pay the interest must come from the principal of someone else; therefore, there is no way to pay off all debt. This creates a highly competitive economy with "1%" winners and "99%" losers. Debt must always increase."
Why make it so complicated? You don´t agree that only a new loan can pay for the interest on the global level?
Albert Einstein said:"The wireless telegraph is not difficult to understand. The ordinary telegraph is like a very long cat. You pull the tail in New York, and it meows in Los Angeles. The wireless is the same, only without the cat."
Why not? Do you imagine that we might run out of numbers?But debt can´t continue up forever of course.
As the economy grows, more people owe debts to one another for goods and services supplied to them. We call those debts ‘money’. There’s no limit to how much money can exist, because it’s literally just numbers - the value of goods and services supplied but not yet redeemed as other goods or other services.
I go to work, because I need groceries, rent, household goods, gasoline, repairs to stuff, etc., etc. But my boss doesn’t give me any of those things. He owes me them; But he doesn’t have them. So instead he gives me money - a representation of the debt he owes me. And the clever thing about debts that are expressed as money, is that I can pass those debts around to other people. Instead of me having to go to my boss and ask for a tin of beans, I can go to the store, and give them some of the debt, in exchange for a tin of beans. Now my boss owes the store, for those beans.
That’s what having money MEANS. It means the economy owes you a debt. Because debt and money are THE SAME THING.
Of course, the bigger the economy gets, the more debts there are that haven’t yet been settled. So the more money there must be. But money cannot ‘run out’, because the currency issuing entities (typically either nation states, or fractional reserve lenders) can always issue more - it’s just numbers. We are never going to run out of numbers.
It´s from here: https://greensformonetaryreform.org/problem.shtmlIf that’s a quote, you should supply attribution. Who are you quoting?Looking for some sources that may explain this better. Some quotes.
THE PRIVATIZED MONEY SYSTEM
"The critical problem is in how and by whom our money is created, which has caused untold suffering, poverty and wars and now even threatens human existence on our planet. Our money system has been privatized. In the current system, money is created as a debt at the instant a bank makes a loan, by simply adding an entry in the ledger -- in other words, created out of thin air. In the current system, this DEBT-MONEY must always be paid back with interest. However, only the money representing the principal of the loan is created; the money for the interest is NEVER CREATED. The money to pay the interest must come from the principal of someone else; therefore, there is no way to pay off all debt. This creates a highly competitive economy with "1%" winners and "99%" losers. Debt must always increase."
Why? What makes a new loan impossible?Why not? Do you imagine that we might run out of numbers?But debt can´t continue up forever of course.
As the economy grows, more people owe debts to one another for goods and services supplied to them. We call those debts ‘money’. There’s no limit to how much money can exist, because it’s literally just numbers - the value of goods and services supplied but not yet redeemed as other goods or other services.
I go to work, because I need groceries, rent, household goods, gasoline, repairs to stuff, etc., etc. But my boss doesn’t give me any of those things. He owes me them; But he doesn’t have them. So instead he gives me money - a representation of the debt he owes me. And the clever thing about debts that are expressed as money, is that I can pass those debts around to other people. Instead of me having to go to my boss and ask for a tin of beans, I can go to the store, and give them some of the debt, in exchange for a tin of beans. Now my boss owes the store, for those beans.
That’s what having money MEANS. It means the economy owes you a debt. Because debt and money are THE SAME THING.
Of course, the bigger the economy gets, the more debts there are that haven’t yet been settled. So the more money there must be. But money cannot ‘run out’, because the currency issuing entities (typically either nation states, or fractional reserve lenders) can always issue more - it’s just numbers. We are never going to run out of numbers.
Eventually there are to few possible new loans left to pay for the old loans interest.
How can productivity create the money necessary to pay the interest? Without a loan i mean.Why? What makes a new loan impossible?Why not? Do you imagine that we might run out of numbers?But debt can´t continue up forever of course.
As the economy grows, more people owe debts to one another for goods and services supplied to them. We call those debts ‘money’. There’s no limit to how much money can exist, because it’s literally just numbers - the value of goods and services supplied but not yet redeemed as other goods or other services.
I go to work, because I need groceries, rent, household goods, gasoline, repairs to stuff, etc., etc. But my boss doesn’t give me any of those things. He owes me them; But he doesn’t have them. So instead he gives me money - a representation of the debt he owes me. And the clever thing about debts that are expressed as money, is that I can pass those debts around to other people. Instead of me having to go to my boss and ask for a tin of beans, I can go to the store, and give them some of the debt, in exchange for a tin of beans. Now my boss owes the store, for those beans.
That’s what having money MEANS. It means the economy owes you a debt. Because debt and money are THE SAME THING.
Of course, the bigger the economy gets, the more debts there are that haven’t yet been settled. So the more money there must be. But money cannot ‘run out’, because the currency issuing entities (typically either nation states, or fractional reserve lenders) can always issue more - it’s just numbers. We are never going to run out of numbers.
Eventually there are to few possible new loans left to pay for the old loans interest.
(Leaving aside your other gross error in believing that a new loan is necessary to pay interest - which ignores the entire concept of productivity, as others have already explained).
Who cares about money? I can’t eat money, or drive it, or wear it.How can productivity create the money necessary to pay the interest? Without a loan i mean.Why? What makes a new loan impossible?Why not? Do you imagine that we might run out of numbers?But debt can´t continue up forever of course.
As the economy grows, more people owe debts to one another for goods and services supplied to them. We call those debts ‘money’. There’s no limit to how much money can exist, because it’s literally just numbers - the value of goods and services supplied but not yet redeemed as other goods or other services.
I go to work, because I need groceries, rent, household goods, gasoline, repairs to stuff, etc., etc. But my boss doesn’t give me any of those things. He owes me them; But he doesn’t have them. So instead he gives me money - a representation of the debt he owes me. And the clever thing about debts that are expressed as money, is that I can pass those debts around to other people. Instead of me having to go to my boss and ask for a tin of beans, I can go to the store, and give them some of the debt, in exchange for a tin of beans. Now my boss owes the store, for those beans.
That’s what having money MEANS. It means the economy owes you a debt. Because debt and money are THE SAME THING.
Of course, the bigger the economy gets, the more debts there are that haven’t yet been settled. So the more money there must be. But money cannot ‘run out’, because the currency issuing entities (typically either nation states, or fractional reserve lenders) can always issue more - it’s just numbers. We are never going to run out of numbers.
Eventually there are to few possible new loans left to pay for the old loans interest.
(Leaving aside your other gross error in believing that a new loan is necessary to pay interest - which ignores the entire concept of productivity, as others have already explained).
That money do not exist on the global level without a loan.
The above are his beliefs. He's trying to find a source that supports his beliefs.If that’s a quote, you should supply attribution. Who are you quoting?Looking for some sources that may explain this better. Some quotes.
THE PRIVATIZED MONEY SYSTEM
"The critical problem is in how and by whom our money is created, which has caused untold suffering, poverty and wars and now even threatens human existence on our planet. Our money system has been privatized. In the current system, money is created as a debt at the instant a bank makes a loan, by simply adding an entry in the ledger -- in other words, created out of thin air. In the current system, this DEBT-MONEY must always be paid back with interest. However, only the money representing the principal of the loan is created; the money for the interest is NEVER CREATED. The money to pay the interest must come from the principal of someone else; therefore, there is no way to pay off all debt. This creates a highly competitive economy with "1%" winners and "99%" losers. Debt must always increase."
The above are his beliefs. He's trying to find a source that supports his beliefs.If that’s a quote, you should supply attribution. Who are you quoting?Looking for some sources that may explain this better. Some quotes.
THE PRIVATIZED MONEY SYSTEM
"The critical problem is in how and by whom our money is created, which has caused untold suffering, poverty and wars and now even threatens human existence on our planet. Our money system has been privatized. In the current system, money is created as a debt at the instant a bank makes a loan, by simply adding an entry in the ledger -- in other words, created out of thin air. In the current system, this DEBT-MONEY must always be paid back with interest. However, only the money representing the principal of the loan is created; the money for the interest is NEVER CREATED. The money to pay the interest must come from the principal of someone else; therefore, there is no way to pay off all debt. This creates a highly competitive economy with "1%" winners and "99%" losers. Debt must always increase."
You bet! I pay the interest from the excess cash flow that I have left over each month. I get my paycheck then pay all my bills and debt service. Luckily for me, my expenses and total debt service are a little less than my paycheck (teenagers will eat into your paycheck). Outside of student debt, I'll never borrower a dime in my life. Very debt adverse.The above are his beliefs. He's trying to find a source that supports his beliefs.If that’s a quote, you should supply attribution. Who are you quoting?Looking for some sources that may explain this better. Some quotes.
THE PRIVATIZED MONEY SYSTEM
"The critical problem is in how and by whom our money is created, which has caused untold suffering, poverty and wars and now even threatens human existence on our planet. Our money system has been privatized. In the current system, money is created as a debt at the instant a bank makes a loan, by simply adding an entry in the ledger -- in other words, created out of thin air. In the current system, this DEBT-MONEY must always be paid back with interest. However, only the money representing the principal of the loan is created; the money for the interest is NEVER CREATED. The money to pay the interest must come from the principal of someone else; therefore, there is no way to pay off all debt. This creates a highly competitive economy with "1%" winners and "99%" losers. Debt must always increase."
You want to explain how you are going to create the money for interest on debt without a new loan and a printer.
Not necessarily.That money comes from a loan as well no?Savings.But where is the money for the interest going to come from if not from a new loan?
In example, suppose my savings is money stuffed in my mattress or in the form of wood flutes I carve from branches I find snd then sell for cash whenever I need extra purchasing power.jdf5 said:We don´t create money. You may get some interest when saving but it´s lower than for a loan.
Not necessarily.That money comes from a loan as well no?Savings.But where is the money for the interest going to come from if not from a new loan?
In example, suppose my savings is money stuffed in my mattress or in the form of wood flutes I carve from branches I find snd then sell for cash whenever I need extra purchasing power.jdf5 said:We don´t create money. You may get some interest when saving but it´s lower than for a loan.
Explain to me how those sources of fund necessarily require additional loans at the global level.
Micro understanding builds macro thinking.Not necessarily.That money comes from a loan as well no?Savings.But where is the money for the interest going to come from if not from a new loan?
In example, suppose my savings is money stuffed in my mattress or in the form of wood flutes I carve from branches I find snd then sell for cash whenever I need extra purchasing power.jdf5 said:We don´t create money. You may get some interest when saving but it´s lower than for a loan.
Explain to me how those sources of fund necessarily require additional loans at the global level.
Although I think jdf5 is wrong, you aren't speaking the same language he is. You are talking micro, he is talking macro.
Not necessarily.That money comes from a loan as well no?Savings.But where is the money for the interest going to come from if not from a new loan?
In example, suppose my savings is money stuffed in my mattress or in the form of wood flutes I carve from branches I find snd then sell for cash whenever I need extra purchasing power.jdf5 said:We don´t create money. You may get some interest when saving but it´s lower than for a loan.
Explain to me how those sources of fund necessarily require additional loans at the global level.
You are not paying attention. Earlier you claimed paying interest REQUIRED ADDITIONAL loans at the global level. How does my example REQUIRE ADDITIONAL global loans?Not necessarily.That money comes from a loan as well no?Savings.But where is the money for the interest going to come from if not from a new loan?
In example, suppose my savings is money stuffed in my mattress or in the form of wood flutes I carve from branches I find snd then sell for cash whenever I need extra purchasing power.jdf5 said:We don´t create money. You may get some interest when saving but it´s lower than for a loan.
Explain to me how those sources of fund necessarily require additional loans at the global level.
The money in your mattress and the money you receive from the flutes came into existance through a loan to.
Why not? Do you imagine that we might run out of numbers?But debt can´t continue up forever of course.
You still fail to understand that when interest is paid the money doesn't just vanish.If you are going to pay the interest, the money that do not yet exist on the global level then somewhere in the global economy a loan must be made.Assuming there is a global shortage if money, why would that mean that my earnings would necessarily require new loans?On the local level yes but on the global level there is a shortage of money.