Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
I still don't see how it drives growth in the amount of funny-money, nevermind the real economic output. I don't understand the deterministic causal mechanism you postulate exists between interest-bearing debt and a requirement for ever-increasing industrial production. It seems to me that I can construct a toy steady-state economy by having the government exercises its power to issue and confiscate fiat currency appropriately.

Now, that's not to say that I don't think there is some merit in re-arranging the relationship between debtor and creditor so the creditor takes more of a haircut when the debtor goes bust. But that's a rather less sweeping reform than re-arranging the entire monetary system...

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Feb 22nd, 2009 at 10:30:30 AM EST
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