"Someone has to borrow every dollar we have in circulation, cash or credit."
Robert Hemphill
Credit Manager of Federal Reserve Bank, Atlanta, Ga.
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Reader comments about this quote:
 -- Nicholas Walter Mattson, Atascadero, California      
Yeah, duh! and then it can't be paid back because of the interest charged. Though credit may be a necessity to progress an economic society; a monetary system that is based on credit is doomed to collapse.
 -- Mike, Norwalk     
  • 2
    Right again Mike, our dollar bills are Federal Reserve Notes and are not backed by anything.
     -- jim k, austin     
    Credit is a gamble a bet on the future. Without credit we would be a backward looking no progress society. Young people buy homes and have kids expecting to pay for these things in the future with future earnings or credit. What are future earnings except part of a gamble. If one had to postpone marriage and plans until he had all of the resources to carry him to the end of his plans, death that is, hell he never would be able to start living in the first place. I think you are correct Mike credit is necessary for progress, the question is how much credit, how much gamble. People who have excess sitting around having nothing better to do with it but to help others with their plans in the form of loans/credit.
     -- Waffler, Smith, Arkansas     
    Credit is a faithless mistake. Be satisfied with what you have and with good stewardship build upon that. Have faith that good stewardship of those resources currently available will lead to the prosperity you require for home and family. Credit as a 'money' system is just another Ponzi Scheme.
     -- Randy, Baytown, TX     
  • 1
    I am not sure people really fathom the depth of this statement. Every single 'dollar' in circulation has been 'borrowed' at interest -- there is no other way to introduce new currency into the economy. When 'loans' are paid back plus the interest, it is absolutely necessary that someone else borrow even more in order to keep the money supply constant. This is INSANE -- except for the bankers running the scam. Not only do we have to borrow every dollar, the dollars are simply issued with literally no cost to the 'lender'. It is counterfeiting on a grand scale. Every dollar in your pocket is a debt someone is paying interest on -- and if the government borrowed it, then we all are paying taxes to keep that bill in circulation. In other words, we are RENTING our money supply forever instead of having a currency backed by gold/silver or any combination of hard commodities. America has been robbed!!! You can thank Woodrow Wilson and FDR for that. America has never recovered and all economic booms and busts are completely caused by this iniquitous system. Wake up, for your own sake and your children's sake. Credit is necessary for business (right to contract) but to force people to accept IOUs in lieu of cash is wrong. We cannot be forced to accept debts -- that is servitude. If we indenture ourselves, it must be of our own accord -- at least there will be a chance that SOME of us will not become debt slaves.
     -- E Archer, NYC     
  • 2
    ".... has to borrow ... " I'm not bright enough to understand the entire concept: but I guess the point is that the ink and paper had to come from somewhere ... and the "somewhere" is an imaginary space and time that someone created, then assigned to it an arbitrary value. Does this economic philosophical observation include the newest fad -- the "new" ...er .. "currency," the name of which I can't recall,
    but I sure don't want to become involved with ANOTHER form of what boils down to "barter," no ?
     -- Bobble, Ferrisburgh, VT     
     -- Jim K, Austin      
    Currency backed by gold/silver returns wealth to the individual. This at odds with the practice of usury, and economic rent of land. citizen dividends. Barter for gold and silver, commodities, in exchange for labor assures stability, and is worth saving. Most if not all do NOT want to become debt slaves given the opportunity. O to rise up Americans and Wake Up and realize, you have no financial Liberty. and with our type of Liberty, the right to private property without economic rent !!
     -- Ronw13, Yachats Or     
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