As I’ve said before, the debt-money system has a built-in debt/growth imperative, based as it is on compound interest.
Exponential growth cannot be sustained forever.
If debt MUST expand over time, it must be heaped upon either the private sector or the public sector.
When the debt carrying capacity of the private sector has been reached (as it has been now), the public sector must pick up the slack (as it has been doing for most of the past 100 years, but especially since 2008).
That is why I call government the “borrower of last resort.”
National governments are unique in being able to play this role because of their collusive arrangement with the banking cartel.
Once the government has absorbed all the available savings from the private sector, or if government debt cannot be marketed at acceptable rates of interest, the central bank will monetize the debt. That is the essence of inflation; generally rising prices are the result.
“Wouldn’t this imply that political structure (ie control of government) is a critical aspect to the success of any currency?”
It is a critical aspect, but it is also an aspect that tends to destroy the success of the economy. The assumption here is that money, from one central perspective, can somehow anticipat ethe needs and even the opportunities of a diverse economy.
By what standard? Here is the deal:
If a group of men running the federal reserve board can understand the process, there is no reason why any other group of men, located anywhere in the world, cannot also understand the process.
If it can be known and understood by one person, it can be known and understood by any number of persons.
This fact is strengthened by the use of computers. Anything that can be understood and translated into language can be translated into algorithms, and then programmed into a computer. Anything that can be known and managed by one group, therefore, can be perfectly copied and ‘pasted’ into any other group, much as I pasted your statement in my own response.
The assumption of a central government being necessary for a successful economy will no longer hold.
Just wondering if you had seen this video and what you thought about it?
“Since the value of money depends on those who use it…….”
Please justify this remark, as I suspect your house to be made of straw.
Since the value of money depends on those who use it, wouldn’t that mean that actions taken by other “economies” (foreign or based on other currencies) can influence value by influencing those who use a particular currency?
That is, there is an interdependence aspect to economies.
Wouldn’t this imply that political structure (ie control of government) is a critical aspect to the success of any currency?
Pingback: When Will The Dollar Die? - Tom Greco at Chelsea Green