This article does contain some misconceptions about how fractional reserve banking works, or let's say it has been overly simplified here. If you take it apart more accurately, you will find that credit will and can be issued out of nothing at all, not even 1%. The 1% is more concerned with a bank's investment strategies on the capital market. The way it has been portrayed here probably helps the unaware person still believing in the "simple model of banking" to recognise the intrinsic problem.
Comparing the national debt with the availability of monetary assets also doesn't really make much sense. National debt is related to a nation's value creation more than to monetary assets. But the picture serves well to illustrate the incredible mountain of debt nations are sitting on.
All in all, though:
The sentiment of this post and the message we can take from it are absolutely right and I will get behind them at any time!
edit I just saw this post. It's a great read with similar sentiments! You might be interested!
Hi @fraenk, thank you very much for your constructive criticism! (:
I must admit that you are right about the simplification. Maybe I should have mentioned this explicitly, but my intention was to reach out to alle the uninformed readers here on Steemit and wake up their awareness. I didn't want to do this by overwhelming them with details, but you are still right here and I can't argue about that. I hope they do their own research now.
At first I wanted to compare the debt with the 'gdp' to show the huge leverage, but then I need to start explaining what the 'gdp' actually is and that's why I choose this 'simple' comparison with something that everybody knows about.
Kind regards.
Yes, I understand your reasoning.
And I do applaude your efforts... it was a great read and I do hope it made a lot more people think!
I personally will even stand behind your position on having children, which appears to be the most provoking aspect of this post after all... sadly!
I really appreciate the applause.
By judging the comments here (I don't know if you understand German) it definitely triggered some people's thoughts.
Of course the readers feel mostly provoked about the childen paragraph because they think that it's the only thing they really have control about in their life.