Arguments on Interest

This is a good essay, but the problem of definitions mars it:

Money creation is a happy process. Everyone likes it, from businesses to banks to governments to the everyday wage earner who is happier even if his salary only rises by the same amount as inflation. And this is so even for our debt-money system, in which money is very much ‘loaned into existence’ as a debt is created. The temptation is strong, and this is fundamental.
As the Devil has it, there are two issues with this that are necessary consequences:
(1) With debt comes interest, and if one keeps expanding the borrowing, one day the interest requirement will exceed earning power, and this is where the ‘advanced economies’ are today.
(2) If the money supply grows faster than the amount of goods and services it can be traded for, this leads to inflation. It is important to have people believe that their money is good so they do not have the tendency to convert their money into real assets. Hyperinflation is the currency event in which faith is lost in money and when people rush to buy real assets, they find that there is not anywhere near enough physical assets to satisfy money claims.

He is describing credit creation (asset-less backed), not money creation.  he has all the rest right, but he focusses on hyperinflation, when the event will be hyperdeflation.  As prices drop, and costs, and valuations remain on the books as high, taxes will not be cut for they will begin to dwindle.  Too many Americans are on welfare, such as Boeing, to cut taxes.  When a property, like a downtown high rise can no longer generate the rental income to even cover the taxes due based on nominal valuation, there will be not buyer for the property, or the home.  The bottom of the market is not low prices, it is no buyers.  We have seen that before in our lifetimes.

It's going to get rough, and right now the means for rectification are miniscule compared to the problems now in play.  Get self-employed.

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