In a debt backed money system, all money that exists is borrowed into existence with compound interest attached to its repayment. Velocity of money plays a part, but not a big one. If you borrow the first 100 dollars into existence, and owe 110 dollars back, where does that extra 10 dollars come from? By getting others to borrow more money into existence to help you service your 110 dollar debt. But the solution is the problem. Now the others who have borrowed, owe interest beyond what they originally borrowed. This cycle can only perpetuate itself by the exponential borrowing of money into extistence to service the interest that is deflating the money supply.


I have thought about this long and hard but what is the alternative?
let congress spend money intom existence?
no way
I say the present system is ok provided we allow the
destructive depressions to run theior course
its Keynesian economics that has allowed the systerm to get to the poinmt of imlosion
we should have taken the depressions
we need to let the market be free and end any cent5ral banking interference and a return to goverb=nmnets only spending what they recieve in taxes



The answer is to issue debt free money that correlates with the increase in population.