Bensons Says: SO asia has lots of debts of USA man, and iraq and iran will only take euros for thier oil. So now US securities are of no value to china man right? Or to anyone for that matter.

Warren says: It is by selling, I repeat, and by selling alone—whether it be by the sale of property or the sale of the use of our talents or of our land—that we acquire the credits by which we liberate ourselves from debt, and it is by his selling power that a prudent banker estimates his client’s value as a debtor.

Bensons Says: Buffet said we were not selling the produce of our farm, but were literally selling the farm to the point where we would have no land and no labor to sell from working that land, we would have NOTHING to offer this world and be totally irrelevant and useless and a ward of some generous soul willing to feed and clothe us out of the kindess of his heart.

Warren says: But a government produces nothing for sale, and owns little or no property; of what value, then, are these tallies to the creditors of the government? They acquire their value in this way. The government by law obliges certain selected persons to become its debtors. It declares that so-and-so, who imports goods from abroad, shall owe the government so much on all that her imports, or that so-and-so, who owns land, shall owe to the government so much per acre.

Bensons says: What if the government owns all the houses, like taking them over in foreclosures and bailing out banks, and government owns all the labor because everyone is a government employee, then your PREMISE is incorrect. The government now owns the land, the labor, the food, the research, the tobacco fields, the sugar fields, the universities, the lawyers, etc etc

Warren says: Now let us see how the same result is reached by means of a loan instead of by taking the purchaser’s bill and selling it to the banker. In this case the banking operation, instead of following the sale and purchase, anticipates it.

Bensons Says: Aye Laddy, there is the rub, the banking operation anticipated B, C and D having the ability to buy the goods they wanted and having some useful output of labor or some land to sell, but as Buffet said, they sold the farm and now have no land and no labor to sell from working the land. The government owns it all and the private citizens have nothing.

Warren says: The danger lies not in the bank-note but in imprudent or dishonest banking. Once insure that banking shall be carried on by honest people under a proper understanding of the principles of credit and debt, and the note issue may be left to take care of itself.

Bensons says: Yes, bad loan officers only chasing the next bonus, bad wall street people packaging these bad loans also only chasing the next bonus, bad mutual fund types selling these packages to thier clients also only chasing the next bonus. Dishonesty is inherint through the whole chain that these bad loans flowed.