Growth is growth, nominally. Liquidity is king. Fundamentals have been usurped.

The most liquid, most money-like assets will fare better than the illiquid and the claims on money that dominate our current financial system.

If you are holding other people’s liabilities, you’re gonna have a bad time, growth or not.

Hard to measure economic impact or efficiency of debt growth. It probably has some net growth effect assuming it wasn’t 100% destructively invested- but how much?

I’m sure someone has a chart somewhere to show GDP growth overlaid on money supply growth or debt growth over time, but not sure how much that actually tells us… parallels to returns minus inflation but more complex since we’re talking about a whole country (or maybe multiple countries, since the question didn’t specify)

too deep for me. here to read and learn

You mean the housing market going up 40% just like inflation? 🤯

The argument is always ‘you’re just pulling money forward through debt’, but I agree, how is that real growth? How is that sustainable? And how is it a functioning system when the government or a judge decides to forgive or bailout that debt? How is that any sort of a free market?

It might work for a short while to take big swings, but the home runs and strikeouts are few and far between.

In the end, it’s never the debt that is actually building anything. It’s humans, often times with the help of technology, that build things.

To the first question-I think yes. Dollars are loaned into existence to produce something, and the production is used to pay back the debt, extinguishing the money.

When "too much" money is loaned into existence (I.e perhaps because of the supression of interest rates) to produce things, it is still economic growth, but borrowed economic growth from the future.

You cannot put economic growth in a number.

"Economic growth" is subjective.

You can say we produce more houses and put a number on that but is that growth if it takes more human time or less meaningful work or less beauty in the world? You cannot put a number on this.

Monetizing debt creates a negative economy, devoid of treasure, stacked with liabilities as far as the eye can see. How many banks today have real, positive assets in their treasuries? How many central banks? How many nations? It's all IOUs. I hope I live long enough to see a world economy based on positive wealth, where assets are real treasures that required energy to produce, and debts are counted as liabilities, negative assets, risks. The current system is entirely backwards.