John112 Wrote:
Dec 03, 2012 12:04 PM
The fallacy of Geithner's stated goal of a “stabilized debt” is that the Fed uses debt to create the money needed for economic growth. More debt is also created by the banks in our economic system. And therefore, more debt is needed both for growth and to pay for the existing debt. There is very little money that has not been created as debt in our economy. So, under this debt-based monetary system promoted by Geithner, debt can never be “stabilized”. Under this monetary system, debt will not stop growing until recession and default occur. And, that is where the risk lies that Congress and the President must now address in order to avoid default and economic collapse.