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Originally Posted by Strange Famous
humankind as a collective is capable of producing a set amount of resource
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I can generate a very very variable amount of resources, depending on my motivation.
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Each depressions, each shock, each crash is worse than the last... how many more before the people challenge the lies of the elite that "there is only one way"?
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False. I am not aware of a shock that was greater than the great depression. And it is often argued that the 1870s depression was far worse than the 1930s depression.
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Originally Posted by Suave
You know a system is screwed up when you think about the fact that it would completely crash if everyone paid off their debts.
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Think what it would mean if everyone paid off their debts.
It means nobody has any obligation to anyone to do any work. The demand for money is based off of people who really want to get money for ... well, eventually, to pay off their debts. On top of that, if nobody wants to borrow money, it means nobody can think of a means to take money and invest it to generate a profit using resources beyond what they already own.
Nobody that others think can replay debt wants to borrow money. Which means everyone that has the ability to repay already has all of the resources they desire. Only those who don't have the ability to repay want to borrow money. Everyone wants their resources enough that they aren't willing to lend them at a rate anyone is willing and able to to pay back...
If you don't have something that the farmer immediately wants for his food, what can you give the farmer? You can give that farmer an IOU, saying you'll repay the farmer later. Even better, you can find an IOU that
many people are willing to repay, and give it to the farmer, giving the farmer lots of choice.
An IOU that many people are willing to repay is currency.