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richardhutnik on 06 December 2011
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Kasz216 said:
richardhutnik said:
Kasz216 said:

Money is NOT a zero sum game.

Money today is LESS than a zero sum game.  The way currency is produced makes it so.  When currency enters the economy, it enters with interest, which puts the system in a situation where there is insufficient money to service the debt, particularly if there is any form of economic slowdown.  End result here is the system will force people to default and go insolvent.  

Now, one can say WEALTH is not a zero sum game, and there is truth to that.  A system can have sustainable growth and be able to help more and more people.  This is a situation where more people end up winning.  But as it is now, it isn't so.  The end result today is a paper game where money produced stays in the financial system, and doesn't get out. Rich get richer because of how it is rigged, and unless you can get on the other side of the debt game, with money being leveraged, you fall further and further behind.  Sure, some who aren't on the debt game sometimes get lucky, and get there, but it isn't the norm any longer.

Except... that's not true? 

If it didn't get out, why would anyone want to build up their money they could never use? 

You consider all these statements to follow to be true?

* When money is created through the Federal Reserve, it enters the economy interest free and circulates, not requiring to be paid back with interest to the Federal Reserve.

* There is sufficient money in existence today to serve all the debt that is currently out there.

* The current system is not set up in such a way that it is impossible to pay off all debt out there, particularly when there is an economic slowdown that disrupts the flow of money throughout the system.

* Economists are not saying there is currently too much debt in the current system, which is holding back growth.

 

If you are saying what I originally wrote is not true, then you do agree with all of the above I wrote as being true in that, there is not a systemic problem with debt that results in the financial industry being richer while those who depend on it get further and further behind the debt cycle? 

This video goes into part of this (It is from Money as Debt):

And here is another one that is shorter, that shows what happen, if you don't grow the money supply to service the debt that is created in the economy:

This issue pops up due to compounding interest, and also is why Ponzi schemes and MLMs fall apart.  Eventually, there is insufficient amount of new money coming in so the system collapses, and the economy is ruined: