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Re: James A. Baker III

Gunnar Tomasson wrote:

<<SNIP>>

> Comment:
>
> Given
>
> (a) outstanding credit (money supply) of 100, and
>
> (b) loan interest rate of 10% per loan period, then
>
> (c) end-period repayment of principal and interest will total 100 + 10 =
> 110.
>
> Absent NEW credit to the original debtor(s) in the amount of 10, accrued
> interest CANNOT be paid.

So many intelligent posts and then this!

Gunnar, debt is eliminated by repayment; the money, even
when it is only central bank credits, used for repayment
just keeps rollin' along.

<<SNIP>>
--
			-- jbod

		Tax Privilege, Not People
___________________________________________________
Come visit and see a new economic perspective --
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