johngonole

Credit Card Cancer

Tim,

tis true that our fiat currency is just another form of debt. That is govt debt. That is why china and others no longer demanding our currency because they lack faith in our govt's policies can dramatically reduce the purchasing power of the dollar. The problem with simply expanding our debt money (the dollar) to manipulate the economy is threefold. First it is debt. Us taxpayers will now be paying interest on a higher amount of national debt forever. Second because by law we are all basically forced to settle debts by using this debt money we no longer really have a free market in money. The Fed somehow can gain real assets just by printing it because of thier monopoly by law. So we are in many ways being enslaved by the Fed. We are also enslaved because (by law the dollar being the only real liquid currency) we are all pretty much forced to either spend our money or place it in institutions that use it to enrich themselves. You can't place dollars under your mattress because the inflation theft. So we are all paying serious commissions are our work everyday to the Fed and the financial institutions in one form or another. Look at different country ETF's. You will find that financial services industry makes up an enourmous size of economies all over the world. Before the recent slide US financial services sector made up over 20% of the S&P 500. This is repeated all over the world. Essentially this form of debt money you feel so comfortable with has enslaved us. Even those without any non-dollar debt pay dearly every year to the benefit of the banksters. A gold and silver backed currency would not require interest payments. Because Gold and Silver are becoming harder to mine everyday that currency would be less prone to inflation. Heck the trading currency might even become more valuable with time. No more need for Social Security.

Basically everytime we expand our debt money the middle classes savings is wiped out and a new cycle begins. With each cycle we end up with less responsible people and more people living off of others. How many cycles it will take before all social order is lost I don't know but eventually anarchy will happen and another dark ages will begin. Unless of course we take Peter's advice above and go back to a savings based society and free up our currency options.