Wednesday, October 27, 2010

A Defining Moment

There seems to be a little trouble with the notion of "making money."

Some people seem to think they make money by working. Well, that's how you earn money. But it is not how money is created. The difference is, if not enough money is created, it's difficult to earn money.

So now you will tell me that there is too much money. And I will say: No, that's credit.

What's the difference? Oh, that's easy: If you start with a dollar of credit, and you take away a dollar of money, you're left with a dollar of debt.

And there ya go: In our economy there is too much credit and not enough money. And the proof of it is something everybody already knows: We have too much debt.

Thing is, we can't solve the debt problem if we don't pay attention to money and credit.

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