Crash Course: Chapter 12 - Debt (1 of 2) by Chris Martenson

Chapter 12 (Debt - Part 1 of 2): Dr. Martenson explains how, since debt is a claim on future money, it is therefore a claim on future human labor. To put it simply, debt is future consumption taken today. Key Concept 7 is introduced, that "ever-growing debts implicitly assume that the future is going to be larger than the present." Dr. Martenson challenges this assumption, and what it means for us if that condition of growth is not met.

http://www.chrismartenson.com

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[carlfinkle]

If the total debt of the US government was stacked in $1 bills it would reach to Pluto

[1ecnahc]

Debt is nothing more than the sale of your future. Think before you sell.

[TWSceptic]

@carlfinkle I must say that is a much more convincing way of looking at it than the one in the video.

[Lolznator]

@carlfinkle no it wouldn't...

[88roro11]

@AngeliqueEU yup.. we should have money spent in to existence ( fiat currenct based on faith and good markets not debt and extortion)... on infrastructure, school, hospitals, and environmentally responsible power plants.. then taxes collected would go to maintaining and running infrastructure/ public services.. rather then pay interest on debt first.. be for putting it toward good.. out debt based economy will eat its self.. kinda like that Mayan snake that is eating its own tail

[AngeliqueEU]

This course is a learning experience! Really it is .. I did know something about it of earlier things I saw and/or read on the internet. But this is explained in a good and 'easy to undersand way'

but it makes me feel hopeless ............

Hopeless for the future to come ... the next 20 years ....

[AngeliqueEU]

I was I think one of the last Generations to learn to save money in order to buy what you want ....

In the USA this happened a Generation ealier I guess ...

Also the people live on Debt ..... they 'made' us = you know the advertisements 'new kitchen' and/or car even hollidays on money we didn't have an took out a loan or on creditcard....

[AngeliqueEU]

@stocktradinginvestor "HAVE to have dollars"

But if those dollars are have been printed out of thin air .. ???

The whole money system will collapse ... question is only when?

[stocktradinginvestor]

The euro is going bust before the dollar. The dollar is the reserve currency so internationally banks HAVE to have dollars because they can use treasury bills as collateral when lending. Once the euro goes up, there will probably be a 2nd Breton woods agreement and a currency realignment that may change the reserve currency causing the US to abandon the dollar or hyperinflate.

[christo930]

@christo930 Since the total debt here is 48T and if you assume an average interest rate of 5%, in order to avoid deflation, 2,400,000,000,000 will need to be loaned into existence just in 2009 to meet the interest payments. Since the amount of debt has gone up substantially since then, we must be getting close to 4 or 5 T in new money to just to service the interest on the debt by now (9/22/01).

[christo930]

It's amazing that we went from 9.44 trillion at the time of this video (2008) to 14T today (9/22/2011). So while it took over 200 years to get to 9.44T, it increased by 50% in a little over 3 years! Now that is speeding up!

[MrErspamer]

You can call it cash flow