Hi doma,
So I think I've figured out that the real source of your economic angst is not gold but credit. You worry that governments cannot finance their debt and that people cannot finance their debts etc.
Okay. I get it.
I think it sometimes makes sense to finance long-term activities using debt, so long as the potential income exceeds the interest expense. I think sometimes governments are important consumers (eg during depressions) and debt is used as a way to enable goverment consumption. I think debt is a great form of finance when interest rates are really low.
When times are good, I think paying down debt is often a good idea. The US did this under Clinton. Tax rates were higher then. Bush lowered taxes and launched a couple of unfunded wars. This was not sensible. We had a crash. At this point, for me, government borrowing is important.
Not sure why access to debt is a form of slavery rather than merely a sort of contract which two willing parties enter into. If you don't want to use a credit card, you don't have to.
| 