DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Why a reduction in gov't spending won't do any good

**amberamuletuk** · 05-04-2012, 04:14 PM

If .gov wanted to payoff their debt, borrow less, and balance the budget, they would. How much money was created to save the "Too big to fail" crowd? Trillions?

They could have paid off EVERY mortgage in America for less. That would have freed up (IMO minimum) close to $1000 per month per household IMMEDIATELY. That would have been a hell of a shot in the economies arm! Agree?

Their goal doesn't seem to be fixing anything that will help you though.

But paying off every mortgage in America would have the disastrous side effect of destroying the economy. Remember, our money is debt/credit based. How do FRNs come into being? By being borrowed. If you pay off the debt, the money disappears. If all the mortgages in America were paid off, instantly trillions of dollars of money disappears from the economy, and we go into a depression. The only way to keep the game going is to increase credit, any reduction in credit will bust the economy.

"a credit-expansion boom must unavoidably lead to a process which everyday speech calls the depression" - Ludwig von Mises

05-04-2012, 04:14 PM	#5
amberamuletuk Join Date Oct 2005 Posts 363 Senior Member	If .gov wanted to payoff their debt, borrow less, and balance the budget, they would. How much money was created to save the "Too big to fail" crowd? Trillions? They could have paid off EVERY mortgage in America for less. That would have freed up (IMO minimum) close to $1000 per month per household IMMEDIATELY. That would have been a hell of a shot in the economies arm! Agree? Their goal doesn't seem to be fixing anything that will help you though. But paying off every mortgage in America would have the disastrous side effect of destroying the economy. Remember, our money is debt/credit based. How do FRNs come into being? By being borrowed. If you pay off the debt, the money disappears. If all the mortgages in America were paid off, instantly trillions of dollars of money disappears from the economy, and we go into a depression. The only way to keep the game going is to increase credit, any reduction in credit will bust the economy. "a credit-expansion boom must unavoidably lead to a process which everyday speech calls the depression" - Ludwig von Mises
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