SnowDog wrote: >..without any additional Federal Reserve Notes coming into circulation, >then their currency would deflate as people continued to pay-off their >debts. In this scenario, almost all of the US debt would be unserviceable. >An economic calamity of mammoth proportions would ensue because people >cannot pay-off their debts in Federal Reserve Notes, in a deflationary >spiral. > Are you sure of this? A FED note is a debt instrument. A debt cannot be paid by another debt. Therefore no debt has been paid since we went off the gold standard. Debt can only be paid in species (gold, silver, etc.). The FED system is a program of credit. There is no money in general circulation.
As we can see such a system is finally strangling itself on its own Frankenstein of credit and forever increasing credit. The spiral is unwinding. I dunno if there is a solution, generally. About all we can do is get ourselves, individually, weaned from that system and onto something akin to e-gold. Then property rights are reaffirmed and property can be exchanged for property instead of fictious credit for claims on property. -- Life, Love and Laughter, Dale Pond Sympathetic Vibratory Physics Sacred Science - Sacred Life http://www.svpvril.com SVP Discussion Forum: http://groups.yahoo.com/group/svpvril/ --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED] Did you know that e-metal is a wonderful holiday gift? Avoid the hassle this year!
