In other words, claims for dollars (debt) grows far more quickly than the economy’s ability to generate dollars, and is far larger than the amount of dollars in

In other words, claims for dollars (debt) grows far more quickly than the economy’s ability to generate dollars, and is far larger than the amount of dollars in existence. When this becomes too much of a problem, the amount of base money is simply increased by the central bank. Um, yes? That’s how the fractional reserve system works to solve the problem. And then the problem is solved. Debts are simply leverage on top of the base money supply. Banks are the source and sink of this credit money. When banks don’t think a business or person can repay a loan, they don’t extend credit. Also, when people or businesses default, the bank makes less loans to avoid becoming overleveraged. Gradual inflation isn’t nearly as much of an issue as a recession or a depression. It only hurts lenders who have locked in an interest rate, or “savers” who simply put money in a bank (which is the racket… helping the banking system create the money supply). The REAL issue is that bank underwriters have to GUESS whether a business will do well over 10-15 years. The banks are the source and sink of the vast majority of our money (the M2 credit money that the author talks about, vastly exceeding the M1 fiat currency). Now, if each community had its own currency and paid a UBI in it (monetary policy) and charged tolls and taxes in it (fiscal policy) then the community itself would be the source and sink of the money. Instead of bank underwriters guesising, PEOPLE would simply exercise their own choices as to which business to buy goods from. This is a far better way to pick winners and losers AND helps those who need the money the most. Banks don’t lend you when you NEED the money, only do it on predatory terms that get you further into debt. The real problem is not having an alternative to the banking system. Crypto COULD power such an alternative but this is what would need to happen: https://intercoin.org/proposal.pdf https://intercoin.org/proposal.pdf