From: "Robert B.Z." <[EMAIL PROTECTED]> > Danny, > > So the ultimate result is pretty much the same. > > Without extra money supply the average person would now be able to buy 10 > > times more shoes for his money, because they have become cheaper. > > With the extra money supply the average person now has 10 times more money > > to buy these shoes which are still selling at the same price. > In the real world people MUST buy 10 times more shoes because the quality > is so low to ensure ongoing consumption, because the money supply keeps > growing and despite everyone earning more, somehow everyone ends up owning > less and owing more. > > The reason for that is that we are all paying the interest on governement > debts and interest on bank loans, factored into the price of everything we > buy.
How much does it cost to service public debt? well where I live, Australia, the Commonwealth government has a net debt of about AUD 30 billion. At an estimated 6% p.a. interest rate on public debt here, that is AUD 1.8 billion, which is about AUD 100 per person per year. This is about one day's after tax wages, depending on your wage rate. Put in terms of government expenses, it's about 1% of the cost of government. It's the other 99% that worries me! David Hillary --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
