Gee – how I wish I could understand this.
Seems we all owe money to the financial institutions – that we just lent loads of money to because they were going to collapse…..
Wow…it seems like a protection racket to the uneducated like myself.
But then who am I…?
The international financial system is a load of crap that’s only two sovereign defaults away from collapse
Make that 3.
The core value of currency now is that a nations taxpayers will pay whatever credit is owing. That is the basis of the credit that underpins modern currency. You take that away and you got mayhem … because you got nothing
@ Eureka: “Wow…it seems like a protection racket to the uneducated like myself.”
If you believe this, then you understand very well. Your second comment is spot on. There is ‘educated’ (being an ignorant expert) and there is ‘wisdom’ (you recognise sh*te when you encounter it).
Dork’s comment about a ‘physical economy’ and its extractive nature – to produce something of ‘value’ – is more technical and salient. It has strict physical limits, unlike fiat credit which may be created without limit (well, almost!). Few folk understand this well. Hence the sh*ite!