or we just watch cash accounts grow further...a return to the mean for savings??? A lot will depend on the international capital flows and the degree to which capitalism takes root in developing foreign economies.
One needs to read it a couple of times. Its quite complex and many many have failed to understand this revolutionary and totally different theory. debt is nothing knew. and for your information, it is the people who own proporties. there is no real added-value to governments in owning lands in ways put above. it is an asset for people of the land to own property. clear property rights in most leading nations is a key factor in achieving this. on top of which, you may secure other credits, loans, and other securities etc. A very well known book is written on this subject, and why poor nations continuelly fail to develop like those that have. it also reflects CONFIDENCE in the financial system and the state as a whole. those that do not hate the fed may well be "jerks", but only those that do knew where they would be without it. [/QUOTE] Yes, you are looking at the right things but focus to much on the present. Debitism is mostly explaining the past not the present. capitalism has it limits. but no single establishment today, or even through history, has been purely under one roof 'Capitalist', 'Fascist' etc. they've all been a flavoured mix. [/QUOTE] What is capitalism? Many wise guys tried to explain it but it still remains undefineable. much of these ideas just give a nice turn to those 'intellectuals' who have nothing else to do than philosophise and rape every concept known to man. credit (debt) is one of the key ingredients to faster growth and better economic well being. of course a sword can also be given to the wrong hands. nevertheless, it is working class, who have, and will remain, in the most stressed economic class. and it is THEM who are the least educated, and will forever pay for the cycle, as they have no sense of what money is. [/QUOTE] Too give an idea of how debitism works, i will show a couple of main steps. 1. Untill 6000 bc men lived more or less in anarchy. Government was not invented yet and one owned what he could protect against others which was very little( House anda field at most ). There was no private property because government and therefore law wasnt present. Economic was nonexistent only self-support and exanges in small groups, where one trusted each other. 2. Humanity reached a critical mass and another way of satisfying the daily human debt ( essential daily dose of food, shelter... ) started to became lucrative. They began to exploit each others. For some individuals it made more sense to hold a weapon to anothers throat as to hunt or work for themselfes. This grew into powerful individuals with a horde of payed soldiers who terrorised and exploited the weak masses. The beginnings of todays government. The very first money that was found was money where soldiers were paid with. 3. Because government wanted to get the max out of his people and to save himself, he constructed law and order. With that something special came into play namely private property. Now people could start to make contracts and if problems arose they went to the governmently installed court and they in the role as the big brother for weak individuals fixed it. The possibilities of private property like lending or renting without fear that contract-partners dissapeared when it was time to pay or just occupy ones renting house in another town, let the economic really burst. I would say that this "governmently induced private property turbo economic" is not healthy/too much of the good and will soon destroy itself. As it all started because of over-population, it looks like it is natures way of reducing over population of our race. Anyway... The biggest hurdle that the capitalism theory cant manage is the way it tries to explain what money is, how it reaches the market and what effects it has there. Money in debitisms view: Wood is made to paper. - It is not money yet. Central bank is printing this Paper. - It is not money yet. Then cut into the size of dollar notes. - It is not money yet. Delivered to private banks and stored there. -It is not money yet. Stored there fo many years but is never money. A person goes to this bank and takes a credit. Bank gives it to the person and now is into circulation. All this time there was no inflation. The person goes shoping and now the printed paper turns into money. This money hits on goods and the prices of goods rise which is called inflation. The special thing about this first buy of a credit is, that it never ever can buy again. If the shop owner goes himself shoping with this money, it will not inflate prices again. Money can only buy once from an inflation point of view! After the first buy everything else is just totally unimportant exchanging. Funny enough this is where the established theories focus on exclusively. Also it is important to understand, that every money note is a credit that somebody owes a bank. Thats why it is called debitism.
I posted about the book a few months back in the "resources" forum. Interesting book, focused a bit too much on US political history for my tastes, but still worth reading.
Dollar bills are not made of paper...they are 25% cotton and 75% linen. Its more of a cloth, than paper.
http://en.wikipedia.org/wiki/Debit Humans work because of debit in form of food, need of a house etc. Without those debits we wouldnt do anything except maybe starring at the sky 24/7.