Re: (Not) understanding money and debt

Mr. Maletta and Other Forum Members,
                  As stated previously, my knowledge of economics is weak.  
However, I do not interpret Mr. Bombois' argument as being for the refusal of 
debtor nations to pay the debt.  If this were the case, you would undoubtedly 
be correct in saying that we could all do so on the same basis.  I believe 
his point is that credit is virtual money which is actually created 
ex-nihilo.  Therefore, he is saying that it would cost the lending agencies 
little to cancel the debt, especially of the kind that has no reasonable 
probability of being repaid.  It seems to me that if he is correct, then 
lending agencies should go ahead and cancel unpayable debt and earn 
themselves some good PR and goodwill.  My only question is whether this newly 
created virtual money has a vital use for the lending organization.  In other 
words, does even unpayable debt have a purpose and utility for the lending 
organization?  What happens to it once the money gets created? 
                                                                  Thank You,

                                                                  Manuel A. 
Paulet


Manuel A. Paulet
615 S. Tenth St., Apt. #3
Lafayette, IN 47905
765-742-6797