The basic premise of our current fiat and debt based economic model is that money can be created out of thin air. If the premise is true then the results of using the policy will continue. If they are not true then, eventually, the truth will be revealed and the system will collapse.
But any collapse from an error won’t be instantaneous. Whatever ill effect that the practice of creating money out of thin air could cause may remain veiled for some time. Picture a train going down the track but the bridge ahead has collapsed. While the train is riding down the tracks everyone has no concern whatsoever even though catastrophe lies ahead.
Any discovery of any problems laying ahead of us because of our current economic system is mainly a mental exercise. No one can run ahead of our economic system into the future to see if the bridges are sound and still standing. So we’re all on the same train, riding down the currently sound tracks, and everything looks fine. The only recourse is to stay on the train or to get off based solely on nothing else than mental exercise and debate about the plausibility of being able to create money out of thin air.
The problem is that the past and current generations have throughout the time of this new paradigm pushed all their unpaid bills (i.e. national debts that could have been paid by printing money out of thin air) on to future generations. If the operators of the current system were truly so confident that money could perpetually be printed out of thin air then why would they need to resort to leaving future generations indebted? It seems to me the reason for all the national debts is that the past and present generations simply failed to create enough money to pay them.
That conclusion is just so painfully obvious to me I seriously question the honesty or sanity of anyone that differs. If you are one of those then how would you explain the growing national debts in any other way than that they are failing to print up enough money to pay them?
I have followed economics and studied economic theory for some time. I haven’t any “formal” education on the subject but, traditionally, the “theories” coming out of those institutions tended to be labelled complex and above anyone except the most elite’s abilities to understand. I started this post with
If the premise is true then the results of using the policy will continue. If they are not true then, eventually, the truth will be revealed and the system will collapse.
If the theories of the highest economic minds are not understandable and cannot answer the simple question I pose about the national debts it seems the only mental option left for anyone on the train is to simply turn off their brain and stop asking the question. And that is what I am saying has been done to each succeeding generation under this current system. It DOESN’T add up that national debts would continue to rise AND that money can be created out of thin air as every Western nation does. Each succeeding generation gets dumber and dumber. The train will always keep going because it always has.