1.What are the three main forces that drive the economy?
A: Productivity growth; Short term debt cycle; Long term debt cycle
2. So in our current economic condition, what is the most important thing that
needs to be done to maintain and grow the economy?
Sure, jobs and employment are important, but what is the fundamental thing that
drives the economy?
A: People need to do transactions to the economy grow up. The total amount of
spending drives the economy.
3. What are the two things Central Bank or Fed does?
A: Control the amount of money and credit in the economy and collect taxes and
expend money.
4. Credit is debt. How much of the economy is credit / debt and how much is
cash?
A: Credit is about $50 Trillion and the amount of money in $3 Trillion
5. Productivity is the key to a growing economy, but it's limited. We can only gain
so much skill, knowledge, and attitude. We can only work so many hours in the
week, month, year. So what is the main thing that we need? Individuals,
businesses, banks, and the government all use it.
A: The main thing that we need is credit, because with credit we can stimulate people
spend money, in that way grow the company, but always lend money with a security to
not have a lot of borrowers that can’t afford what they lend. We can’t have a debt rise
faster than income, can’t have a income rise faster than productivity, and we always
need to try too produce more.