This article started well, then ran off the rails when it suggested that fiat money isn't fiat at all. Also it betrayed a shocking ignorance of the direct role of credit money in economic crises. And the author? A humanities major, not an economist. Much becomes clear.https://twitter.com/jvs1965/status/949048482937167872 …
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The author alleges that easy and plentiful credit are NECESSARY for the economy to grow. Certainly, like steroids, debt can pump up an economy. But there is a price. The asset bubble - where all assets are correlated and all are increasingly overvalued - is the result.
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Replying to @moritheil
Right, houses would be much cheaper if there weren't so much debt being used to support their prices. Imagine how much houses would cost if there were no mortgages. Worse yet, people have to get debt just to keep up. How can you outbid buyers who can take much more debt on?
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So everyone gets in debt, and everyone pays their tithes to the banks, but are we actually better off?
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