The modern 21st century economy is impossible without central banking and fractional reserve.
There are a myriad of ways to reign in the booms and the busts of the market⌠but that takes political will to enact regulations and adequately fund the enforcement.
Also⌠have a jubilee on Student debt and subsidize college for people. Count it as an investment for the future of the nation.
There was nothing wrong with the debt-based system per se.
What was wrong was assuming the debt-based system was something that would work at all times under all conditions.
Good Lord.
Booms and busts are not inherent in the free market. They are at all times the result of inflationary monetary growth. Every recession in history can be precisely tied to a corresponding previous period of inflation. It is the monetary and banking system, not the market, that is the cause of the business cycle.
And any politician who proposed a âdebt jubileeâ would not last in office long, I assure you the banking cartels huge political money would be used to drive him from office and any debt jubilee would have a catastrophic effect on this system that REQUIRES debt just to exist.
And it is the subsidies, in the form of student loans, that have been a major factor in driving up the cost of college so much.
NahâŚSafiel is right hereâŚstudent debt exists for a reason.
Those in the know understand we are reaching a boundary condition in the global economy which, absent some âBlack Swanâ event, is precluding future real growth.
And thus are increasingly adding more debt to keep up a business as usual approach which isnât sustainable in the long run, but is making a lot of certain people very very wealthy in the short erm.
The debt-based system requires growth to work.
Why? because interest isnât included in the money created in a debt-based economy.
One should then ask oneself what one would see when real economic growth potential becomes constrained.
I disagree.
There are many reasons for the student debt problem.
If we as a nation donât bite the bullet and try to do a reset, it is going to be a real drag on the economy going forward.
But donât worry⌠nothing radical is really going to happen.
We donât do that anymore.
The âdrag on the economyâ is a wallâŚa real wall.
That those who advocate for more debt see and understand, but most do not.
Alleviating student debt will do nothing about that wall.
Not growth. Debt.
No- I was correct the first time.
But thanks for playing, Mr. âReading Economy Makes My Head Hurtâ.
Well, now we are kinda getting into the academics and philosophy of money a little.
Without debt fueling an economy, it is really hard for an economy to expand. Without debt, new dollars donât enter into the system, and that is just as big of a problem as an inflationary bubble
As far as a wall and student debt⌠it will help the people who are crippled by that debt and allow them to move resources into buying real goods instead of having money drained away for acquiring skills that makes the economy move forward.
The economy is facing natural constraints that our current system is not suited for.
The purpose of debt in the economy now is to make certain people/groups richâŚnot drive real economic growth.
We are at a boundary condition where the rules that defined our system apply less and less.
Ah⌠now I get what you are saying and I canât disagree with that.
No, itâs debt-based.
This seems like a very likely scenario to me. In one sense, I hope Trump remains in office until the house of cards that he is building collapses.
And just to be clear, I am not wishing for economic disaster. It just seems like we are headed up â â â â creek and our POTUS has thrown one paddle overboard and is reaching for the second.
