How does the current monetary system make sense?

We need money, to trade for services and goods. If through our hard work our economy grows, the good and services offered grow we need more money, else currency experiences inflation and people hold on to a currency gaining in value rather than spending it, cooling the economy.

However all money that is issued by the central bank, wether its the dollar the euro or the pound, comes with a debt attatched. So by working hard and growing your economy you screw your country, because you create the need for more money to control deflation, which in turn necessitates a raising of the money supply, which will increase the debt towards the central bank. A debt that can not be repayed, unless you get your hands on enough foreign currency to do so. How does that make any sense?

two words........it doesn't

i thing we should go back under something like "the gold standard" in which countries moneys are set against a resource (gold in this case), to determine value. don't know what to use since apparently everyone has been selling off their gold reserves, but i would think almost any "real" substance could be used in it's place.

the "funny money" we now have i feel is a bit dangerous, kinda like back in the 20's when even elevator operators were "getting rich" by buying stock on "the margin", in other words only paying a partial cost of the stock. this is pretty much why the market crashed, they called in the debt (the imaginary money used to pay for most of the stock), and when people couldn't pay it went "CRASH. sound familiar?

There is now way that it makes sense so the answer is, it does not make sense.

reply to post by Cassius666


Well, I'm no financial expert, but imo our current monetary system is kinda weak. Based on debt that I've already accumulated, and can never pay off, since I was born because I am a US citizen is stupid. Money itself is stupid. I'm hoping for Star Trek NG days where we give up the need for money. It could happen!

reply to post by Cassius666


As a way to live, it doesn't make any sense, on a few levels.

But if you view it for the purpose it was created for, as a control system, a way to control the people, then you can see the sense. Because if all you want to do is control the people, then the amount of debt becomes irrelevant.

st.

First of all, I think this might want to be moved. Is this political?

It doesn't make sense is the correct answer. If anything, it's redundant. Bartering for goods and services makes much more sense to me because it keeps everything more equal.