simondav wrote:The system has
simondav wrote:
The system has to collapse eventually anyway, because the real economy cannot service the increased interest and debt repayment.
This is a bit of a wild claim which I don't think is endorsed by Positive Money, is it? It certainly isn't by your star witnesses Sir Mervyn King, Paul Tucker and the others.But don't worry, the system is not going to collapse because not all interest can be repaid. Interest comes and can be paid from past or future production. It's only a subdivision of profit, and profit comes out the surplus value workers produce when they work in the real economy.