Earlier quoted context omitted.
I got about 20 minutes into that "Money as Debt" video -- that's when he starts departing from, let's say, generally accepted theories of money. I don't have time to watch the whole thing, but I gather from other descriptions of the video that he advocates a policy of fiat money and repayment of debt via deliberate inflation, which is exactly the theory of the old Social Credit movement in Western Canada. That self-d…
I agree, and I should have said this, “Money as Debt” takes a conspiracy turn at about halfway. I'm a reminded of Adam Savage's "Do you mean Tesla the inventor of AC power, the genius or Tesla the nut-job?". I very much liked your explanation in the third paragraph, but under this model what does interest represent? If I step through your logic here..... 1. I believe there is copper in that hill which has a value ( s…
Even if the miner doesn't find copper, he's still obligated to pay back his loans. Maybe the bank seizes his property or he pays it off slowly from some regular job where he generates some other value. Either way it will work out in the end, although perhaps the effect is slightly inflationary until he pays off his loan.
And you have to take into consideration all the other loans made. If there is some other miner whose enterprise works out, then, if risk estimation techniques are good, it balances the one that failed.
When the techniques that everyone is using to estimate risk are totally wrong, you get the USA in 2009.
Again: not an economist.