Comments on: Chart of the day: Debt to GDP http://www.creditwritedowns.com/2008/05/chart-of-day-debt-to-gdp.html Finance, Economics and Markets Thu, 09 Feb 2012 21:54:06 +0000 hourly 1 By: VacantHomes http://www.creditwritedowns.com/2008/05/chart-of-day-debt-to-gdp.html#comment-2774 VacantHomes Mon, 26 Jan 2009 04:18:28 +0000 http://www.creditwritedowns.com/2008/05/chart-of-the-day-debt-to-gdp.html#comment-2774 If you take this chart back to 1922, it's *much* scarier: <a href="http://www.nakedcapitalism.com/2008/07/has-deleveraging-even-begun-not-for.html" target="_blank">http://www.nakedcapitalism.com/2008/07/has-deleve...</a> (Well, this chart is private+public debt, not just private debt. But the scary thing is that Debt-to-GDP is mean-reverting.) If you take this chart back to 1922, it's *much* scarier:

http://www.nakedcapitalism.com/2008/07/has-deleve…

(Well, this chart is private+public debt, not just private debt. But the scary thing is that Debt-to-GDP is mean-reverting.)

]]> By: Gregory K. Soderberg http://www.creditwritedowns.com/2008/05/chart-of-day-debt-to-gdp.html#comment-2397 Gregory K. Soderberg Wed, 07 Jan 2009 20:36:52 +0000 http://www.creditwritedowns.com/2008/05/chart-of-the-day-debt-to-gdp.html#comment-2397 We've been 'hooked on debt' since our money was switched from an evidence of wealth to an evidence debt. We use evidence of debt for money. All money is created as loans when we pledge our collateral and sign promissory notes. The principal of the loan is uncreated when it is repaid. Beside the servitude to the lender required of borrowing, no money is ever created to pay interest with. Money we pay interest with or try to save is simply other loan principal captured in the process of commerce. When we repay principal and interest, we really just transfer the debt to someone else. Because the interest cannot be paid the total indebtedness must grow. Time does not increase the money supply. Time only increases the indebtedness. The HONEST and JUST SOLUTION is to create money and 'spend' it not 'lend' it into circulation. Spend it as a payment for new production that benefits all society equally..."Coin money"? "Provide Post Roads"? Perhaps 'spend' it in for public roads and bridges in lieu of taxation or borrowing. Can't pay debt with more debt and get rid of the debt. We’ve been ‘hooked on debt’ since our money was switched from an evidence of wealth to an evidence debt. We use evidence of debt for money. All money is created as loans when we pledge our collateral and sign promissory notes. The principal of the loan is uncreated when it is repaid. Beside the servitude to the lender required of borrowing, no money is ever created to pay interest with. Money we pay interest with or try to save is simply other loan principal captured in the process of commerce. When we repay principal and interest, we really just transfer the debt to someone else. Because the interest cannot be paid the total indebtedness must grow. Time does not increase the money supply. Time only increases the indebtedness. The HONEST and JUST SOLUTION is to create money and ‘spend’ it not ‘lend’ it into circulation. Spend it as a payment for new production that benefits all society equally…”Coin money”? “Provide Post Roads”? Perhaps ‘spend’ it in for public roads and bridges in lieu of taxation or borrowing. Can’t pay debt with more debt and get rid of the debt.

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