A Vintage piece.

Our disagreement, as you know, relates to this

Thus this does not necessarily means that the financial system is inherently unstable,

I believe that in engineering terms the interest on deficit "fiat" Money represents a "positive feedback" that actually does render the system inherently unstable.

It's like the brick and the elastic: the elastic used to be weaker; the brick, smaller; and the friction of the surface, less. But sooner or later, if you keep pulling on the elastic, the brick will hit you in the face again, and harder.


"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky