Reply To: Should we Balance the Budget?


The question is, I guess, how do we transition to real money that isn’t lent or spent into existence–what will happen to debt and debtors/creditors? I believe Rothbard introduced a way of transitioning that had to do with finding the current dollar/gold ratio of which the government is in possession, supplying the banks with the corresponding gold amounts for 100% reserves…so that the government doesn’t own the money anymore–of course, FDIC and fiat legal tender would be eliminated. Perhaps it is in one of the links but I understand Joe’s concern–all the solutions seem paradoxical. Why do so many people believe that we have to have credit that is issued out of nothing? Why do people believe it is the only way to grow or sustain life? Living beneath your means worked for centuries, did it not–for growth and wealth accumulation? Now borrowing above the economy’s means seems to be the only way…and paying off debt by borrowing more through a fiat system…