FOFOA - Life In The Ant Farm
Another thought provoking post from FOFOA... http://fofoa.blogspot.com/2010/04/life-in-ant-farm.html
$0.01 placed at 2% interest for 2000 years turns in to $1,586 trillion, or $1.586 quadrillion, or a hundred year of US GDP. If you don't like 2%, change it. If you don't like 2000 years, change it.
What the previous exercise shows is that a purse of silver was certainly not placed at interest anywhere in the world 2000 years ago, and allowed to compound at 2% interest, since that numerical representation of wealth would today dwarf all known hoards of "money", electronic or otherwise. So compound interest is not a sustainable operation spanning millennia. Compound interest applied to any finite system will grow out of bounds, which is what we are experiencing today. The current "money" system, which is engineered with "debt/credit" as its foundation has breached its sustainable limit. Stimulating the economy without addressing the fundamentals of the "money system" decay will not restore economic prosperity.
IMHO all FOFOAs posts should be read by everyone with an interest in our current economic conundrum, in order to gain perspectives I certainly have not encountered elsewhere, which may or may not turn out to be 'on the money'. But one certainly needs as many perspectives as possible to consider themselves 'informed'.
And I am aware of no small number of pundits shrewder than I who find his thoughts very compelling.