there are never enough dollars in any system to pay off all of the debt. If there was, there would be no need for work to be done. That goes for any currency... don't want people to move to Tibet or something...

The only way the economy keeps going is if the money keeps changing hands. This gives you the appearance that there "is" enough money to pay off all the debts. Now, if one particular person wants to save his money for retirement, thats not a problem either. Because your friends at the bank will gladly lend the money out to someone just in case someone is greedy enough to save.

there are never enough dollars in any system to pay off all of the debt. If there was, there would be no need for work to be done. That goes for any currency... don't want people to move to Tibet or something...

The only way the economy keeps going is if the money keeps changing hands. This gives you the appearance that there "is" enough money to pay off all the debts. Now, if one particular person wants to save his money for retirement, thats not a problem either. Because your friends at the bank will gladly lend the money out to someone just in case someone is greedy enough to save.

There are cons and pros to saving and spending(i'm an economist).  : :pagel:

time will come ...chick when all ur kiwi's were hanged by chinese ,..

Quote from: ✄※ḨҰĐṜØŞŦẨ₮ῘḈŜ on April 11, 2011, 04:25:33 AM

Quote from: ਜਿੱਦੀ_ਸੇਖੋਂ on April 10, 2011, 08:37:38 AM

days r not too far whn chinese overcome usa ...becoz ,,,china is biggest creditor of usa ,,,nd usa owes almost 3 trillion dollars ,,,of china ,,,

Forget about the chinese, they're already struggling.

Hahahahah they can try. But they'll probably die.

Quote from: ✄※ḨҰĐṜØŞŦẨ₮ῘḈŜ on April 13, 2011, 04:57:01 AM

Quote from: kerfufle on April 12, 2011, 10:26:43 PM

there are never enough dollars in any system to pay off all of the debt. If there was, there would be no need for work to be done. That goes for any currency... don't want people to move to Tibet or something...

The only way the economy keeps going is if the money keeps changing hands. This gives you the appearance that there "is" enough money to pay off all the debts. Now, if one particular person wants to save his money for retirement, thats not a problem either. Because your friends at the bank will gladly lend the money out to someone just in case someone is greedy enough to save.

There are cons and pros to saving and spending(i'm an economist).  : :pagel:

I like think I know economics. Do you agree with what I said though?

Saving is good yes, but because a bank is in control of your money it keeps the money moving. Also, storing your money at the bank immediately splits your money in two, in some cases the bank can lend one of your dollars up to twelve times. This make the impression that all the debts are covered because the money is moving so fast. This system also creates a giant void, because there are way less dollars than how much debt there is.

Yeah obviously, money has to circulate to keep the economy going. This isn't to encourage people to spend though.

Quote

Yeah obviously, money has to circulate to keep the economy going. This isn't to encourage people to spend though.

I'm not saying keep the economy going, but rather hide the problem of not having enough dollars to pay all the debts. If the money transfers hands quick enough, people don't realize there are less dollars than debt. So in the past, what the government did was, it kept speeding up the transfer of money instead of printing money to keep up with debt. (Well they try, but because the bank can lend one dollar so many times (at the same time) its impossible to calculate how many dollars they need to print.)

How do they speed up money? One big factor is, banks lend money based on income stream not asset value anymore, making the loan very high risk. Especially when the money supply isn't able to keep up with debt. So every once in a while there needs to be a correction, which means printing money in huge amounts so it is closer to the debt amount.

Second factor is the split of the dollar, why are banks allowed to lend one dollar twelve times?

They're not going to print anymore money, because that'd lead to inflation and people are just going to spend more. I'm still new to economics. Hahaha, this is my 1st year of taking it.

yeah very true kiwi ,,,,printing of more money leads to inflation

Accountants know nothing.  :pagel:

accountants r backbone of economy u knw dat .....

Mate please don't give me that bs. I don't take accounting but i've seen what they do, it looks similar to what we're doing but i'm pretty sure, economics is harder than accounting. If i can do economics, i'll ace accounting, but it's not the same the other way round.

u know economis nd acounting go side by side ,,,,,

nd by d way u r taking abt economis ,,u n first year ,,i hve done masters in dat...ok ....kid u need to grow up more  :D: :D:

Quote from: ✄※ḨҰĐṜØŞŦẨ₮ῘḈŜ on April 15, 2011, 06:45:46 AM

Quote from: ਜਿੱਦੀ_ਸੇਖੋਂ on April 15, 2011, 06:41:28 AM

accountants r backbone of economy u knw dat .....

Mate please don't give me that bs. I don't take accounting but i've seen what they do, it looks similar to what we're doing but i'm pretty sure, economics is harder than accounting. If i can do economics, i'll ace accounting, but it's not the same the other way round.

I was supposed to take it last year in order to take it this year, but because they knew i was genius, they let me in to economics this year and being a 1st year student, i'm 1 of the best economic students!  :excited:  so watch out sekhon!(is that your name?) because there's going to be a new raccoon in town.

Accountants are record keepers, the better ones know a little bit about planning too. But just like engineers, they don't like stepping outside the box.

Quote from: ✄※ḨҰĐṜØŞŦẨ₮ῘḈŜ on April 15, 2011, 04:53:40 AM

Quote from: kerfufle on April 14, 2011, 11:24:52 AM

Quote

Yeah obviously, money has to circulate to keep the economy going. This isn't to encourage people to spend though.

I'm not saying keep the economy going, but rather hide the problem of not having enough dollars to pay all the debts. If the money transfers hands quick enough, people don't realize there are less dollars than debt. So in the past, what the government did was, it kept speeding up the transfer of money instead of printing money to keep up with debt. (Well they try, but because the bank can lend one dollar so many times (at the same time) its impossible to calculate how many dollars they need to print.)

How do they speed up money? One big factor is, banks lend money based on income stream not asset value anymore, making the loan very high risk. Especially when the money supply isn't able to keep up with debt. So every once in a while there needs to be a correction, which means printing money in huge amounts so it is closer to the debt amount.

Second factor is the split of the dollar, why are banks allowed to lend one dollar twelve times?

They're not going to print anymore money, because that'd lead to inflation and people are just going to spend more. I'm still new to economics. Hahaha, this is my 1st year of taking it.

They will keep printing it, until they are comfortable with the difference between money supply and debt. Unless they can forgive some of the loans that they have given over the last couple of years. Sort of like for closing on homes and what not.

There are a few ways you can bring debt closer to the money supply. 1. Pay it back, 2. erase the debt(forclose, bankruptcy, buy outs (makes more debt, but hides the problem in a dark and closed box) and there are probably more, but all I can think of.

I've only taken one class

Yeah they will but they're not going to print loads of 'em. And yeah i agree.

Accountants are record keepers, the better ones know a little bit about planning too. But just like engineers, they don't like stepping outside the box.

:laugh: :laugh: