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Now you are looking at economic growth in terms of real stuff. Unfortunately it's measured in funny money, not actual money's worth.

It is true that at a minimal interest rate which covers the costs of defaults and reasonable system operating costs (ie without insane banker salaries and perks), and with serious constraints on credit creation, then the system can actually burble along reasonably well for quite some time before strains would become apparent.

Unfortunately that's not what happens, because in a "For profit" system greed always gets the better of people, whether shareholders, managers, or both.

Greenspan's triumph was that he enabled the system to come crashing down many years to early by letting greed rip.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Sun Feb 22nd, 2009 at 03:35:25 PM EST
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