The next depression - why it is coming & how we can prevent it?

By: George @ 12:11 PM - EST

Originally posted by GREENisBAD on DailyPaul.

These are just my opinions.

First of all, what is depression?
In my view, depression is an economic condition caused by a malfunction of the debt based money system due to naturally contracting demand caused by aging of the population.

The debt based money system requires a constant growth of the economy to function. Under the debt based money system, money is debt. Money is created when someone goes into debt, but the economy is always in shortage of money because when money is created only the principal amount is created, but not the interest amount. This shortage must be met by constant growth of the economy. In other words, the economy must constantly grow and new money must be created to meet the shortage, which means that more people must go into more debt.

So, why is depression inevitable?
Because as the population ages, demand for general goods and services declines and the economy cannot expand. The debt based money system cannot function without constant economic growth.

What has been done?
First, interest rates have been lowered to make it easier to create new money. This also produces inflation which stimulates spending. In other words, the demand was goosed up to counter the naturally declining demand. Second, lending standards were lowered. This was also done to goose up the demand.

North American Union.
A North American Union is planned to counter the aging of the U.S. population by adding a young Mexican population.

What is the real solution?
The real solution to prevent a depression is to end the debt based money system.

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