Economic consensus is that the economy will get better and employers will start hiring again as soon as consumers start spending money again. Seems to imply that consumers have all kinds of money they are just not spending. That’s not happening. Ever-shrinking numbers of Americans may have money they are not spending but most, particularly theunemployed, do not.

What’s happening is that we are drowning in debt, individuals, government and business.

The greater the debt, the more difficult it is to find those who can cash flow more loan payments. For a long time, since America’s medium-of-exchange was changed from an evidence of wealth to an evidence of debt, all money has been created as loans. We use debt for money-nothing else. If the banks are not making loans, no new money is being created. As current borrowers make loan payments, money is extinguished. The money shortages get worse and worse. The interest on the debt grows with time. The money supply does not.

America’s total indebtedness is near $150 trillion and growing with time. Our total money supply (also all debt) is near $7 trillion. How much more do we need to borrow to revive our economy and sustain it? Can’t borrow enough.

The only solution is to increase the money supply but not as more debt. Can’t pay debt with debt and get rid of the debt. Better put our thinking caps on.

Gregory K. Soderberg

Austin