To put another way: All money is born of debt and all interest on debt has yet to be created and is preferably created out of more debt. Got it, infinite debt has to be possible for it to work out. Faith-based economics.
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Yes, you’ve got it. Leverage/debt needs more leverage/debt in order for all the previous debt to be paid off (in our financial system). I fail to see how this is a viable economic system over the long run.
Most importantly, a nation’s monetary system (money creation) should not be controlled by private parties (banks and the Federal Reserve). The U.S. Treasury should control all aspects of our national currency (actual dollars, not debt), and it should be based on population and productivity trends, IMHO; and the U.S. Treasury should be accountable to the U.S. citizens, not banking interests.
As it stands, there are two markets in our economy. One is the creation of money, which is not necessarily tied to production or population growth/shrinkage, but based on “faith” and leverage.
The other market is that of the real economy (goods and services traded), and this market is beholden to the first, as we are not legally allowed to barter or use other forms of payment.
It seems to me that it’s the financial markets that control the real economy instead of the reverse.
