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Old 01-28-2009, 09:26 AM   #41
Mr.Onion
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Default Re: Inauguration!

$0. Why would you want debt?
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Old 01-28-2009, 03:26 PM   #42
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Default Re: Inauguration!

I admit that $0 seems like a good number at first. But think about all that would have to happen to get there from here. It would mean higher taxes and/or lower levels of government services for a lot of years to pay it off. The banks, faced with the prospect of less revenue all of a sudden, would either cheerfully accept the new situation or raise their interest rates to compensate. So more money would be going to pay for less debt but the government services would still be at a lower level. And this is just scratching the surface of the problems that would be created.

Now if the government reduced debt more slowly, that would be better because it would be less of a shock to the system. But guess what? Governments are always trying to reduce deficits and reduce debt, but things keep coming up that are a higher priority, like right now for instance.

So I'm afraid we're going to be stuck with a lot of government debt for a long time to come. What's needed is a cultural change, where everyone decides that they're just going to work hard and not expect any handouts, and be patient enough to wait for things to get better.

The reduction and then elimination of individual debt is a more achievable first step in the quest to reduce and eliminate government debt.
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Old 01-29-2009, 09:26 AM   #43
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Default Re: Inauguration!

Quote:
What's needed is a cultural change, where everyone decides that they're just going to work hard and not expect any handouts, and be patient enough to wait for things to get better.
And that will resolve the economic crisis how? There is no problem with people wanting handouts: The problem is that the major banks have lost confidence in the other banks' ability to pay back loans, and thus they won't lend to each other. Due to the banks not lending to each other, they have to increase interest rates on loans to stay in business, decreasing the amount of money everyone has. This decreases the profits of other businesses, decreasing the amount of money the managers have...
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Old 01-29-2009, 05:24 PM   #44
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Default Re: Inauguration!

All that stuff you're talking about is only the short term symptoms of the present economic correction. We've had good times for a long time, and they just don't last forever. We need this current correction to get things back in balance.

I was talking about a far more fundamental problem not only with the long-term economic behaviour of particularly the States, but of the way money itself is mostly created. Money is mostly debt nowadays. That is not the only way to create money, and it certainly leads to big problems from time to time like what we are seeing now. The long-term solutions are pretty radical, and most people don't even want to think about them now because of a basic ignorance about the way the money system works.

See The Money Masters video. It explains a lot.
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Old 01-30-2009, 01:04 PM   #45
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Default Re: Inauguration!

Quote:
I was talking about a far more fundamental problem not only with the long-term economic behaviour of particularly the States, but of the way money itself is mostly created. Money is mostly debt nowadays. That is not the only way to create money, and it certainly leads to big problems from time to time like what we are seeing now. The long-term solutions are pretty radical, and most people don't even want to think about them now because of a basic ignorance about the way the money system works.
I am confused as to what this paragraph means. Are you saying that we should create more money so that people can pay off debt?
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Old 01-30-2009, 03:59 PM   #46
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Default Re: Inauguration!

No. That is what we have been doing too much of.
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