Byron Dale part 3 of 9 Money Seminar 11-07-2009

[caveltor]

The system can get out of debt, but why would it. Money paid in interest is not extinguished, ie is still available in the monetary system to be earned from the recipient.

Plus there is a small amount of debt free money representing the desire to hold cash.

No credit would mean almost no economic activity.

[bjorinn]

@caveltor Well, the recipient doesn't just give the interest away, it purchases thing with it. So it buys real wealth (or influence or whatever it feels like) and therefore grows. And this is not because of its competitiveness or any thing like that, but simply for having the exclusive right to issue money.