Hi Bob,

On Mon 2037-Feb-23 23:06, Bob Klahn (1:124/311) wrote to Richard Webb:

RW>>  SHort term:  YOu sell products, keep your workers producing,
RW>>  keep paychecks being cut, folks are happy, they have jobs.
RW>>  YOu artificially prop up the house of cards, for a little
RW>>  while.

BK>  True... but wait... there's more... below.

 RW> WOuld agree with that.  But keeping that money in
 RW> circulation is the big thing.  IF, let's say, you're a
 RW> bank, you have money to lend.  YOu lend it to folks that
 RW> are going to buy from your depositors.  Your depositors can
 RW> then even borrow against their receiable.

BK>  Now that is long term thinking. Do you really believe bankers 
BK> think long term? That long?

YEs, but what you postulate  is also
true.  YOu know they're going to come back to you for
another loan.  You get the principle back, and interest.


BK>  See... the debt does get paid back. With interest. A large and 
BK> growing part of the federal budget is debt service. Within a  fairly
BK> short time, probably 10 years, the national debt will be  mostly
BK> paid off, but then borrowed again. See... the money keeps  getting
BK> recirculated. We borrow, pay it back, then borrow again.  Only every
BK> time it goes around they get paid back the interest.  Which
BK> lubricates the whole process. And they get to keep the  interest.
OF course, that's the whole idea.  That's why they'll always loan a retail
establishment $$ on inventory.

 RW> with all the manufacturing jobs that have disappeared
 RW> replaced by service jobs, many in the financial sector,
 RW> that the economic security of the average American is quite
 RW> fragile. Paper debt owed by paper companies that own other

 RW> paper companies that eventually might get down to where
 RW> somebody actually produces something tangible, i.e. a tool;
 RW> car; motor, wheel bearings, etc.

BK>  Now you are thinking long term again, they will get you for  that.

It's not part of our culture anymore.  .

 RW> The fallout is going to be devastating for millions, but in
 RW> the long run maybe this is a good thing, but the shakeout
 RW> is sure gonna be a bummer.

BK>  It won't be a good thing. Not for a long long time. And we don't 
BK> need the devastation to get the good thing.

Just another example of why man chose to give up his fur.
MOre on that some day .


Regards,
           Richard
--- timEd 1.10.y2k+