...

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.

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

>>    Seems the banks are the HOC, all they offer is paper money and
>> more debt.  The people are the one's who produce/possess tangible
>> goods.

 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.

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

 See... the debt does get paid back. With interest. A large and
 growing part of the federal budget is debt service. Within a
 fairly short time, probably 10 years, the national debt will be
 mostly paid off, but then borrowed again. See... the money keeps
 getting recirculated. We borrow, pay it back, then borrow again.
 Only every time it goes around they get paid back the interest.
 Which lubricates the whole process. And they get to keep the
 interest.

 ...

JF>>   Hmm...  Perhaps I should change the subject heading of this thread
JF>> to 'RISING DEBT REMAINS A MYSTERY'.

 RW> TIsn't that mysterious to this old curmudgeon.  THe money
 RW> lenders want that money in circulation, and they want to
 RW> play with their game pieces.  This whole darned thing has
 RW> been on life support long enough now that it's forgotten
 RW> how to breathe on its own.  I was reading recently that

 Yep.

 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

 Yep.

 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.

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

 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.

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

BOB KLAHN bob.klahn{at}sev.org   http://home.toltbbs.com/bobklahn

... Cat; n:  Lapwarmer with built-in buzzer.
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