Comment Re:You don't even understand how banks work... (Score 1) 72
PositiveMoney has it all wrong. The video says "if we all paid off our debt, the current economic system would collapse". But if we all paid off our debt and stopped working because we didn't need to anymore, then the real economy (i.e. the thing that actually produces food, clothes, houses, cars, computer, electricity, clean water, etc.) really would also collapse because there would be no one doing the work to create all that stuff.
There is a big issue of inequality of both income and wealth distribution. But debt itself isn't the problem. Think about Zimbabwe where the government printed money and handed it out to the poor. Everyone paid off their debts. But the currency is worthless because inflation was 1000%. No one bothered working because the money they got from selling it would be worthless before they could spend it. There was no point in doing anything for which you didn't receive some immediate benefit. The concept of savings simply ceased to exist. (Hoarding, however, was very much still alive.)
Debt, in fact, is the biggest and best backstop a currency has. Debt is the promise that the people who owe money in that currency will work for you in the future. Stuff is still relatively plentiful, but labor, especially skilled labor, is very dear indeed. And debt means a currency is backed by that labor. That's a big part of why the dollar reigns supreme.