Editor
Ford Prefect in “Everyone’s Guide to the Galaxy”, believed the answer to life’s eternal question was 42.
I have come to a more earthly conclusion:
We always use net values in costing and in valuing our production, goods and services, buying a house, a car or a bag of sugar.
Hence, the net value of all liquidity available at any time, circulating in the western finance world is less than the value of the cumulative value of costs already incurred.
The money issued at any time is always deficient in value by the amount of the difference in value between the amount issued and the value of demands on it. This is made up by debt which must expand in inverse proportion to the increase in real values of goods and services. i.e. more growth, more debt.
Hence, poverty and debt become twin products, proportional to the amount of “growth” and inversely proportional to the bank rate.
Don Briggs
Paraparaumu
