Shifting Debts: The Gold Standard: Both Good and Necessary

In response to Reader Question on a Credit-Based Society: Can Interest Ever Be Repaid? I received an email from reader Keith Weiner at Monetary Metals.

Keith writes

Hi Mish,

I hope all is well.

I liked your reply to the reader question. I think it boils down to one thing. With fiat money, there is no extinguisher of debt. Debts are paid using dollars, but the dollar is itself a debt. The dollar is just a bite-sized piece of the Treasury bond. Paying a debt with a debt merely shifts it around.

The debt must rise exponentially, by at least the accrued interest, and more if the government wants what passes for growth.

The Gold Standard Institute is sponsoring an event in NYC on Nov 1. I will be talking about this problem, and numerous others that plague the dollar.

Would you be willing to share the link on your site? It's for a good cause that I think is near to your heart as well. :)

Thanks so much for whatever you can do.

Best Regards,
Keith