What's your response to "Money as Debt" (see video)? Is it true that our society is that economically unsustainable and do you agree with its solutions?
Recently I watched a video clip called Money is Debt by Paul Grignon. It was able to explain to me, in very layman terms, how basically the monetary system allows banks to “create money” out of nothing every time it makes a loan. It pointed out basically because the amount of principal is always less than the principle amount + interest it is basically impossible for society to pay off the debt, and that actually, in the current system being in debt keeps the economy going (because more money is being created in the system).
One of its solutions, if I understood correctly, was for the government to step in and take control of the money, and not charge interest; instead regulating inflation/deflation via taxes. This way people (ie., banks) won’t be allowed to make profit without being productive (as opposed to just making money out of money).
As someone who has only a rudimentary knowledge of economics, I’d like some input from people who are more knowledgeable. How accurately does this video explain what’s going on? Are there countries who don’t run on a debt-based economy? What solutions are there, and what would be needed in order to move off a debt-based economy?
This question is in the General Section. Responses must be helpful and on-topic.