Borrowing money doesn't deplete savings.2: People save money for security. If you borrow against that and then some, you deplete their savings. When you do this, people will want that security back and they will find a way to do it.
Is money hard to come by right now?3: When money is loaned, the next loan automatically becomes harder to get. So when government gets loaned all of this money, it means that private companies will find credit harder to come by.
Yeah, so you're challenging the entire foundation of the banking system. Go outlaw banks if you want. But our banking system works fairly well, even if it sounds weird to you.You may say then that we'll just loan more money, you know, a fractional reserve scheme. Well when you do this, you're basically creating capital out of thin air. Did that sound weird to you? Because it did to me.
By that definition, the entire economy has and always is a bubble of some size. Like I said, if you oppose the entire banking system and fractional reserves, go propose we outlaw it.You cannot create capital goods out of thin air. If you loan out capital that doesn't exist, you create a bubble, and is that really what we want right now?