“What are you talking about, governments do this right now, for better or for worse. They take your money and “invest in community assets”. And if you want to invest more into it, and get your money back later, buy government bonds.”

Yes, that is apparent and obvious, but it is not really the point. The system is circular and we do save money by investing it. The point is that there isn’t sufficient viable investment opportunities for the amount of savings we wish to have and so there is a tendency to spend it in ways which are not productive. What is the return on blowing up other countries? Simply paying people who don’t work, as opposed to finding ways to put them to work, as with the CCC, during the New Deal?

I think it would be evident that enormous notational value is based on increasingly unsustainable leverage and debt, but it seems far too many people are ignoring the elephant in the room and assuming the future we are borrowing against will never arrive.

Every time the markets go down a bit, since 87, the Fed has lowered interest rates and allowed more leverage to build up. It is like an addict getting a shot of adrenaline everytime they overdose, then going right back and doing what they were doing, assuming they will always be saved. Sooner or later, one of these financial heart attacks will be the real thing and everyone will be crying to the Fed to save them again and it just won’t work.

The assets are backed by debts and if the debts don’t pay off…..