Money is debt.

[Dovahkiin]

It can't work any other way. When the government deficit spends and gives the foreign/domestic private sector new net financial assets, the government holds the liability. This is a "debt" for the government, although, being the sole issuer of the currency, the us government doesn't need to worry about spending past tax receipts. That's for another discussion though. Anyways, we must also note that loans create deposits, when billy wants a $10000 loan from the bank, the bank creates a $10000 deposit and the bank gets a liability/asset, the liability being the deposit, and the asset being billy's promissory note. (His payment to repay + interest.) Billy also gets an asset/liability, you should know what these are by now. Most of the time, this all defaults to zero, but when people who take loans can't pay them back, the bank has taken the risk. Anyways, it should be clear now that money is debt. It has to work this way. It does work this way.

 

[Iceweasel]

It can't work any other way. When the government deficit spends and gives the foreign/domestic private sector new net financial assets, the government holds the liability. This is a "debt" for the government, although, being the sole issuer of the currency, the us government doesn't need to worry about spending past tax receipts. That's for another discussion though. Anyways, we must also note that loans create deposits, when billy wants a $10000 loan from the bank, the bank creates a $10000 deposit and the bank gets a liability/asset, the liability being the deposit, and the asset being billy's promissory note. (His payment to repay + interest.) Billy also gets an asset/liability, you should know what these are by now. Most of the time, this all defaults to zero, but when people who take loans can't pay them back, the bank has taken the risk. Anyways, it should be clear now that money is debt. It has to work this way. It does work this way.

Horseshit. You tried to peddle this garbage before after reading some whack job website. Money isn't debt. It's an exchange. Otherwise we could simply run up more and more debt to get richer and richer. Doesn't work that way.

 

[Slade3200]

Problem is there are too many people out there who think our National Debt is equivalent to a credit card debt. To many people thinking that we are borrowing money from China to fund our wars. Too many politicians and pundits feeding these inaccuracy's and praying on the lack of understanding to create fear and support for conservative agendas. There are definitely benefits to conservative economics however, there are also benefits to liberal policies as well. It is a shame that it is so difficult to get an honest discussion about it in our media.

 

[Dovahkiin]

It can't work any other way. When the government deficit spends and gives the foreign/domestic private sector new net financial assets, the government holds the liability. This is a "debt" for the government, although, being the sole issuer of the currency, the us government doesn't need to worry about spending past tax receipts. That's for another discussion though. Anyways, we must also note that loans create deposits, when billy wants a $10000 loan from the bank, the bank creates a $10000 deposit and the bank gets a liability/asset, the liability being the deposit, and the asset being billy's promissory note. (His payment to repay + interest.) Billy also gets an asset/liability, you should know what these are by now. Most of the time, this all defaults to zero, but when people who take loans can't pay them back, the bank has taken the risk. Anyways, it should be clear now that money is debt. It has to work this way. It does work this way.

Horseshit. You tried to peddle this garbage before after reading some whack job website. Money isn't debt. It's an exchange. Otherwise we could simply run up more and more debt to get richer and richer. Doesn't work that way.

Explain what you think is wrong. Point it out.

 

[Iceweasel]

It can't work any other way. When the government deficit spends and gives the foreign/domestic private sector new net financial assets, the government holds the liability. This is a "debt" for the government, although, being the sole issuer of the currency, the us government doesn't need to worry about spending past tax receipts. That's for another discussion though. Anyways, we must also note that loans create deposits, when billy wants a $10000 loan from the bank, the bank creates a $10000 deposit and the bank gets a liability/asset, the liability being the deposit, and the asset being billy's promissory note. (His payment to repay + interest.) Billy also gets an asset/liability, you should know what these are by now. Most of the time, this all defaults to zero, but when people who take loans can't pay them back, the bank has taken the risk. Anyways, it should be clear now that money is debt. It has to work this way. It does work this way.

Horseshit. You tried to peddle this garbage before after reading some whack job website. Money isn't debt. It's an exchange. Otherwise we could simply run up more and more debt to get richer and richer. Doesn't work that way.

Explain what you think is wrong. Point it out.

I did. I said money is an exchange. In debt you get something for nothing in the hope you pay it back.

 

[Slade3200]

It can't work any other way. When the government deficit spends and gives the foreign/domestic private sector new net financial assets, the government holds the liability. This is a "debt" for the government, although, being the sole issuer of the currency, the us government doesn't need to worry about spending past tax receipts. That's for another discussion though. Anyways, we must also note that loans create deposits, when billy wants a $10000 loan from the bank, the bank creates a $10000 deposit and the bank gets a liability/asset, the liability being the deposit, and the asset being billy's promissory note. (His payment to repay + interest.) Billy also gets an asset/liability, you should know what these are by now. Most of the time, this all defaults to zero, but when people who take loans can't pay them back, the bank has taken the risk. Anyways, it should be clear now that money is debt. It has to work this way. It does work this way.

Horseshit. You tried to peddle this garbage before after reading some whack job website. Money isn't debt. It's an exchange. Otherwise we could simply run up more and more debt to get richer and richer. Doesn't work that way.

Explain what you think is wrong. Point it out.

I did. I said money is an exchange. In debt you get something for nothing in the hope you pay it back.

How do you think new money is created? What exactly do YOU mean by saying money is an exchange?

 

[Dovahkiin]

It can't work any other way. When the government deficit spends and gives the foreign/domestic private sector new net financial assets, the government holds the liability. This is a "debt" for the government, although, being the sole issuer of the currency, the us government doesn't need to worry about spending past tax receipts. That's for another discussion though. Anyways, we must also note that loans create deposits, when billy wants a $10000 loan from the bank, the bank creates a $10000 deposit and the bank gets a liability/asset, the liability being the deposit, and the asset being billy's promissory note. (His payment to repay + interest.) Billy also gets an asset/liability, you should know what these are by now. Most of the time, this all defaults to zero, but when people who take loans can't pay them back, the bank has taken the risk. Anyways, it should be clear now that money is debt. It has to work this way. It does work this way.

Horseshit. You tried to peddle this garbage before after reading some whack job website. Money isn't debt. It's an exchange. Otherwise we could simply run up more and more debt to get richer and richer. Doesn't work that way.

Explain what you think is wrong. Point it out.

I did. I said money is an exchange. In debt you get something for nothing in the hope you pay it back.

I think my post has gone over your head.. Re-read it and recognize that money is indeed an exchange, but all money is debt. It literally has to work this way. It does!

 

[Centinel]

I disagree. Money is simply the asset that a society uses for its medium of exchange and unit of account. In the case of the US, our money is federal reserve notes.

 

[Toddsterpatriot]

Money is debt.

I'm holding a $20 FRN. Do I owe interest on it, or does someone owe interest to me?

 

[Iceweasel]

It can't work any other way. When the government deficit spends and gives the foreign/domestic private sector new net financial assets, the government holds the liability. This is a "debt" for the government, although, being the sole issuer of the currency, the us government doesn't need to worry about spending past tax receipts. That's for another discussion though. Anyways, we must also note that loans create deposits, when billy wants a $10000 loan from the bank, the bank creates a $10000 deposit and the bank gets a liability/asset, the liability being the deposit, and the asset being billy's promissory note. (His payment to repay + interest.) Billy also gets an asset/liability, you should know what these are by now. Most of the time, this all defaults to zero, but when people who take loans can't pay them back, the bank has taken the risk. Anyways, it should be clear now that money is debt. It has to work this way. It does work this way.

Horseshit. You tried to peddle this garbage before after reading some whack job website. Money isn't debt. It's an exchange. Otherwise we could simply run up more and more debt to get richer and richer. Doesn't work that way.

Explain what you think is wrong. Point it out.

I did. I said money is an exchange. In debt you get something for nothing in the hope you pay it back.

How do you think new money is created? What exactly do YOU mean by saying money is an exchange?

Money has value. You don't create value by printing it. You can devalue it since value doesn't go up with more money floating around.

If money is debt, come on over and mow my lawn. I'll consider the debt payment in full.

 

[Slade3200]

It can't work any other way. When the government deficit spends and gives the foreign/domestic private sector new net financial assets, the government holds the liability. This is a "debt" for the government, although, being the sole issuer of the currency, the us government doesn't need to worry about spending past tax receipts. That's for another discussion though. Anyways, we must also note that loans create deposits, when billy wants a $10000 loan from the bank, the bank creates a $10000 deposit and the bank gets a liability/asset, the liability being the deposit, and the asset being billy's promissory note. (His payment to repay + interest.) Billy also gets an asset/liability, you should know what these are by now. Most of the time, this all defaults to zero, but when people who take loans can't pay them back, the bank has taken the risk. Anyways, it should be clear now that money is debt. It has to work this way. It does work this way.

Horseshit. You tried to peddle this garbage before after reading some whack job website. Money isn't debt. It's an exchange. Otherwise we could simply run up more and more debt to get richer and richer. Doesn't work that way.

Explain what you think is wrong. Point it out.

I did. I said money is an exchange. In debt you get something for nothing in the hope you pay it back.

How do you think new money is created? What exactly do YOU mean by saying money is an exchange?

Money has value. You don't create value by printing it. You can devalue it since value doesn't go up with more money floating around.

If money is debt, come on over and mow my lawn. I'll consider the debt payment in full.

You didn't answer my question... Do you know where new money comes from?

 

[TooTall]

Problem is there are too many people out there who think our National Debt is equivalent to a credit card debt. To many people thinking that we are borrowing money from China to fund our wars. Too many politicians and pundits feeding these inaccuracy's and praying on the lack of understanding to create fear and support for conservative agendas. There are definitely benefits to conservative economics however, there are also benefits to liberal policies as well. It is a shame that it is so difficult to get an honest discussion about it in our media.

Problem is there are too many people out there who think our National Debt is equivalent to a credit card debt. To many people thinking that we are borrowing money from China to fund our wars. Too many politicians and pundits feeding these inaccuracy's and praying on the lack of understanding to create fear and support for conservative agendas. There are definitely benefits to conservative economics however, there are also benefits to liberal policies as well. It is a shame that it is so difficult to get an honest discussion about it in our media.

The National Debt is the financial obligations of the US government resulting from deficit spending over a period of many years..

The government borrows by issuing securities in the form of government bonds T-bills and US Savings Bonds.

There are short term bonds and long term debts and interest has to be paid until the bond, etc is surrendered for payment.

As long as the interest rate remains low, there is not reason to panic, but if interest rates spike there would not be enough federal revenue to meet the demand.

Default and bankruptcy are a very real possibilities.

 

[SwimExpert]

Explain what you think is wrong. Point it out.

This:

Money is debt.

 

[CrusaderFrank]

Problem is there are too many people out there who think our National Debt is equivalent to a credit card debt. To many people thinking that we are borrowing money from China to fund our wars. Too many politicians and pundits feeding these inaccuracy's and praying on the lack of understanding to create fear and support for conservative agendas. There are definitely benefits to conservative economics however, there are also benefits to liberal policies as well. It is a shame that it is so difficult to get an honest discussion about it in our media.

 

[Norman]

It can't work any other way. When the government deficit spends and gives the foreign/domestic private sector new net financial assets, the government holds the liability. This is a "debt" for the government, although, being the sole issuer of the currency, the us government doesn't need to worry about spending past tax receipts. That's for another discussion though. Anyways, we must also note that loans create deposits, when billy wants a $10000 loan from the bank, the bank creates a $10000 deposit and the bank gets a liability/asset, the liability being the deposit, and the asset being billy's promissory note. (His payment to repay + interest.) Billy also gets an asset/liability, you should know what these are by now. Most of the time, this all defaults to zero, but when people who take loans can't pay them back, the bank has taken the risk. Anyways, it should be clear now that money is debt. It has to work this way. It does work this way.

Yes currency is created as an liability, but there's also a corresponding asset. So this is not something you ever have to pay back.

On the other hand, you will have to deal with inflation and ridiculously laughable government projects. The issue on the matter is that you got no choice. The government just shovels the inferior means of transaction on to you and you just have to be happy with it. Because socialism is awesome!

 

[g5000]

Horseshit. You tried to peddle this garbage before after reading some whack job website. Money isn't debt. It's an exchange. Otherwise we could simply run up more and more debt to get richer and richer. Doesn't work that way.

Explain what you think is wrong. Point it out.

I did. I said money is an exchange. In debt you get something for nothing in the hope you pay it back.

How do you think new money is created? What exactly do YOU mean by saying money is an exchange?

Money has value. You don't create value by printing it. You can devalue it since value doesn't go up with more money floating around.

If money is debt, come on over and mow my lawn. I'll consider the debt payment in full.

You didn't answer my question... Do you know where new money comes from?

Do you know what happens to that money when the debt is paid back?

It is destroyed.

 

[g5000]

As debt is repaid, there is less money in circulation. If everyone paid off their debts, we'd have an economic crash.

The trick is using debt for productive growth.

Debt to start a business, good. Debt for hookers and blow, bad.

 

[SwimExpert]

Do you know what happens to that money when the debt is paid back?

It is destroyed.

Under the OP's theory, yes. But the OP's theory is bogus.

 

[g5000]

Do you know what happens to that money when the debt is paid back?

It is destroyed.

Under the OP's theory, yes. But the OP's theory is bogus.

In actuality, money is created for lending. That much is true. But that is a lie of omission which leaves out the fact that same money is destroyed as the debt is paid back.

If there was no debt, people would be really struggling to acquire enough cash to start a business.

 

[Norman]

Do you know what happens to that money when the debt is paid back?

It is destroyed.

Under the OP's theory, yes. But the OP's theory is bogus.

In actuality, money is created for lending. That much is true. But that is a lie of omission which leaves out the fact that same money is destroyed as the debt is paid back.

If there was no debt, people would be really struggling to acquire enough cash to start a business.

Not all lending creates more money or is based on debt. This is just the nature of fractional reserve banking and government fiat.