People, in business, paying no interest is making profit.

I was born and raised in UK until I was 16. I still have many friends there who .like me, have a hobby which is the study of economics and in particular National accounts and Government debit. I also actively participate on this site so have a fair idea of the American position. Now having said that, I have to agree with the article in the main. Where I have difficulty is understanding the attitude of successive US administrations who appear to believe that because you are in a Fiat finance structure at present, the Fed can continue to build bigger printing presses and run them for longer and longer each day. To a slightly lesser extent, this also applies to Great Britain and in both administrations there has, to date, been no serious attempt to arrest the proliferation of credit; Government both Federal and State in US are all massively indebted and have no possible chance of redeeming the debit without a massive devaluation of the US currency ( UK also over a longer timeframe) An alternative would be to default on the debit and this would throw the complete world financial system into absolute chaos.

I also see no official attempt to either regulate or educate the populace of either jurisdiction away from the crippling rate of credit card debit. How on earth can any average citizen afford a carry over balance at the end of each “interest free” period? The rates are akin to usury and the banks and other providers are the only beneficiaries.

I think people you need a different financial structure both nationally and when the bugs are ironed out, perhaps the world can get on board. What do I propose? Well Bretton Woods was a clever solution to a difficult situation and until Nixon intervened was working well apart from a few flare ups from Europe who pushed the boundaries with their redemption of US Dollars for gold bullion. So why not restrict credit through all strata’s of government and society in general in yearly increments of say 10%. At the end of ten years there will be no need for credit and the real value of the changes will become evident as people suddenly hear the sound of their own money jingling in their pockets. I ask this simple question, what percentage of the population can this day take out their loose change an honestly say,” I do not owe any of this in debit”.

In conclusion, I now live in Australia and apart from my first house have never owed any man or government money. I have had a successful career and this included the establishment and the eventual sale of a profitable business when we retired. People, in business, paying no interest is making profit

Cheers from Aussie.

- kingston

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