15 sats \ 4 replies \ @KingZing 13 Jul 2022 \ parent \ on: If You Aren't Trying to be Money, Why Do You Need a Coin? bitcoin
I can understand people dislike for current system, especially given how out of tuned it is right now, but a system without debt could become far worse.
Afterall debt and credit is so ingrained into the general ledger system already.
Productivity is chasing more efficiency in order to be able to produce more so that the world can sustain more population.
Medical, technology, food, energy production, physical good, infrastructure, employment, education etc all are part of "growth"
Social/wealth inequality is unavoidable.
At its core, it is hard coded into our society, no matter what system or money we use, be it communism/capitalism.
We are creatures driven by desire and want, that's how humans have always progressed and will be so.
If productivity is chasing efficiency, and not having debt would hurt that, (which by the way Saudi Arabia does not have debt its illegal there and usury should be a felony equivalent everywhere because of its societal harms) then how come our system is inefficient as hell because of debt propping up zombie companies and unprofitable companies being propped up by investor speculation (of which is also propped up by debt) and hey how come a housing bubble propped up by debt wrecked the way the entire world economy was set up.
I don't need a bailout to survive, thanks.
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We have never seen a global world without a debt system however. (I see official state says Saudi Arabia has 30% debt to GDP?) .
You will end up with more frequent crashes simply due to the market does not have perfect information and requires flexibility. eg agriculture industries that has a long production period and often vulnerable to pest/demand change/unpredictable supply, that also affects national security/stability.
There are also some industries that are high debt high capital by nature, aerospace for example, I would say bitcoin mining would eventually rank amongst the top as well.
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The fact that Saudi Arabia has debt is ironic https://www.islamweb.net/en/article/157155/riba-usury-in-islam
We have never seen a global world without a debt system In fact, we have never seen a global world before maybe call it World War I as the official start of globally intertwined economics.
In fact, we have never seen a global world in which money can be owned via memorization with no ability for confiscation expect via interrogation or torture and a money that can be sent world wide too.
In fact, we have never seen a global world interconnected through communication via the internet. We're doing a lot of firsts my guy!
As far as having more crashes....what? The Great Depression of 1929 was caused by credit card debt. I don't know maybe you'd point to smaller more easily survivable "crashes" of no where near the magnitude of a debt cycle crash.
Now, in regard to high cost things, the answer is to save money. You save money, you buy the high cost things, and maybe that means things get created a little slower in the short term, but it also means a lot of stuff that should not have been made in the first place doesn't get made and the entire world's economic system doesn't have to be restructured to adjust for a debt collapse and so it also means you build in a more stable manner and societal leeches never get a chance to establish a foothold aka "Too big to fail" status.
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I am plenty sure there will be more frequent crash. A creditless system is extremely brutal to any company or even anyone's financial, economy swings and good business would get wiped.
There are good debts that can facilitate important investment that otherwise would be impossible under a creditless system
there are good government subsidies and good debt. No system is perfect but credit system is here to stay 100%.
Classical Gold standard for example caused import heavy countries to export so much gold that arguably not even sustainable.
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