What is "debt"?
Tim Romano


DIrk Johnson wrote:

[...]    The entire U.S. (and European) system
is based upon debt, not value.  If all debt were paid, under the current
system of banking, there would be no money at all.

The money is created from debt and then used as a "reserve" to create
further debt under a fictitious fractional reserve (fictitious because the
reserve doesn't actually exist except as previous debt), which in turn is
used as a reserve upon which fractional loans and so forth again and again
up to, if memory serves me, 23 times, when it exhausts itself.  Of course,
new debt is simply issued by the government (bonds, bills, notes) and new
money is printed to buy it and the whole shebang starts again.  Banks charge
interest on all of it. [...]