Quote:
Originally Posted by Ark2
1. It does nothing to take into consideration the time value of money. $1 today is worth more than $1 tomorrow, and this is because of inflation. Part of interest compensates for inflation. If it takes you 20 years to pay off your debt of $100,000, you would, in effect, be paying back a significantly lower amount to the government. You may be thinking that without interest rates, there would be no inflation, but you would be wrong. Which brings me to the next point.
2. Inflation is caused by several things, one of which is a money supply that grows faster than the economy. The more money that is in circulation, the more the value of the dollar will decrease, just as in the scenario where only $100 in circulation increases the value of a dollar.
3. Another issue is that these bonds are not charging any interest, which means that foreign investors have no incentive to invest in the Canadian dollar, which further devalues the Canadian dollar relative to foreign currency. This means that when we import goods, it would require more of our money to purchase foreign goods, which drives up their prices and further increases inflation.
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All of these factors, especially your second point are in private control right now, and they are not working in Canadians' favor......it will bankrupt our country or we will be completely owned by corporations.
So you don't go for the film makers idea, even though you watched a fraction of it, that is fine. The point is that the system is set up for us to fail. If private hands wrote up legislation to take control of our money, there is surely a way we can write laws that will take it back.
Maybe some day we will be able to pay off our debt ....because as the system stands, we are doomed for American-scale debt and a REAL crisis.