Economics

Economics

The economy is quite simple and has never really changed except for the government, which is more or less evil, but no one will admit that in any real sense. The economy is about trade. I trade the goods I make for the goods that you make and we both profit from the exchange. That's all.

Introduce now the concept of money. Money is a representation of the goods we make but you can fold it up and put it in your pocket so it's easier to carry around.

Here comes the tricky part. The government has been printings these representations much faster than we've been making stuff. That is the national debt, the difference between the amount of stuff we actually have vs the value of money they've printed. How do we cure the national debt? We make more stuff and trade it for the paper our government has been printing.

Is there any other way?

Eh, no.

So, what is the danger of the national debt?

Someone (I think very soon) is going to figure out that all of that paper is just paper because we don't have the goods that it's supposed to represent. And, who wants paper that's just paper? It might as well be Confederate dollars.

Therefore, I see a shit-storm on the horizon. How about you?