On Aug 12, 11:11*pm, "PrecisionmachinisT"
wrote:

Exonomic growth ( wealth creation ) absolutely depends upon the continued
issuance of debt via the fractional reserve system ----( something I've
been trying to get you to understand for some time )

Maybe if you explain why economic growth depends on continued issuance
of debt , I might be convinced.

Last time, maybe I confused you, you got stuck on the Fed's function but for
the time being forget about the federal reserve...

Anyways, it's called "fractional reserve banking"...

In a nutshell, banks "create" money by taking in deposits from one
individual--and then issuing loans to several others totaling an amount much
higher than the original deposit :

http://en.wikipedia.org/wiki/Fractional-reserve_banking

Bob deposits $100.00 into the bank, and Joe the banker loans out $80 to
about 5 people, and it recycles through the economy several times but as
long as each one of these 5 people in turn deposits $25 into a bank
someplace well then there you have it--a magical perpetual money
machine.....

IOW, digging for gold is dirty work and it's pretty hard at least for me to
imagine a functioning economy whereas pretty much everybody is a prospector
or egg farmer.


Sorry but I understand how banks create money. It is the why economic
growth depends on continuance of issuing debt that eludes me.

Dan