by Jeff Nielson, Bullion Bulls:
A recent commentary introduced readers to a new term: “creditism”. This term was carefully defined and explained to readers as a contrast to capitalism, an ideology with which most readers consider themselves to be familiar.
As the word explicitly implies; “capitalism” is a system based upon capital; i.e. it is a cash-based economic system. On the other hand; creditism (as it was previously defined) is an opposite economic system – one that is based upon debt (or “credit”), rather than cash/capital. It was also explained to readers why, as a matter of simple arithmetic, creditism was/is a grossly inferior economic system versus capitalism (i.e. real capitalism).
With creditism; the wealthy don’t invest their capital into the economy, they lend it into the economy. The inferiority is obvious: with every dollar fueling the economy encumbered with parasitic debt; individuals, corporations, and the economy itself get further and further dragged-down with cumulative (and compounding) interest payments — wasted capital.
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