Why debt and money created ‘out of thin air’ are necessary, not evil


The PBS web site has the article Why debt and money created ‘out of thin air’ are necessary, not evil.

As for those who think they do know all the answers but haven’t spent years hearing the other side, beware. And with that, here’s this week’s q-and-a, with my answers put in the kind of simple, jargon-averse terms I try to use to explain things to myself.

The answers that Paul Solman provides are pretty good, though I wouldn’t call them flawless.  As if explanation of the real world involving human beings could be flawless.  That is why his caveat above is so necessary and so ignored by the people commenting on the article.  The comments by people who think they know the one and only true answer to these questions may be the most entertaining part of the web page.

I have one quote from my Favorite Quotes page, that really applies.

Mark Twain
“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”

On commenter on the post thinks silver has an intrinsic value, and that he knows what it is. I asked him if he were dying of thirst, how much silver would he give for a quart of water. What does this say about the intrinsic value of silver and the intrinsic value of water? If you can’t answer the “simple” question about silver and water, what makes anyone think they have all the answers about something as complex as money?

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