A "debt based monetary system" means that money is created when debt is
created. It is perfectly possible to have a value based monetary system
where "if you borrow money you have to pay interest".
It does work, however, over a period of a decade or so inflation will
start taking its toll. With an honest money system, inflation doesn't
Not exactly true. Inflation can happen but it is easily controllable (and
reversible) and is not a inherent property of the system.
In 1800 a suit could cost you $100. In 1900 a suit could cost
you the same $100. Now it isn't so.
Gold based monetary systems are far from perfect. Major variations in the
availability of gold (e.g. looting of South America, new large mines,
hording, speculation) can result in large monetary instability and
severally damage an other wise stable economy.
Actually, it is. Just look in an economics 101 book that shows our debt
since 1913 to present.
As the money supply grows over time, so also does inflation. I remember
distinctly back in the 50s
when my father got a raise in his paycheck, so also did the price of
food go up accordingly.
And his paycheck came from the federal government. Right now, as the
feds continue to print money,
the goods we need are going up in cost, while what we own like houses
and such go down in value.
Now days and for most of last century, it is the banks that create the
money and that is the root cause of lots of problems, including the
current financial and economic crises.
Pretty much the case. I remember 10 years ago that the majority of the
people never understood their monetary system. Now a lot of people have
woke up to the fact that money is created out of thin air. A google
on "The creature from Jekyll Island" will give you the actual method on
how this works.
I learned how it works at high school, when researching for a project on the
history of money. All my class mates where incredulous and confused, even
my history teacher had a large exclamation point above her head. :)
:D I'll bet she was also at a loss why her history books didn't
reflect this fact.
Monetary systems should be a required study subject in middle or high
I agree. But so far they've failed to publish the facts for the general
"It is impossible to defeat an ignorant man in argument."
William G. McAdoo.
American Government official (1863-1941).