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Discussion Topic: Debt is not wealth - or is it?
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jpdell33 |
01-22-2021 @ 4:38 PM
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Member
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Joined: Jun 2016
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Mike Savage makes great sense that debt is a claim
on wealth. But times have changed for the moment.
Once upon a time a bank could recall a loan on short
notice and the borrower would have to pay up in
full. This happened to my Grandparents at he onset
of the Depression. That had two houses and were
making timely payments on them when their local bank
had a run. That bank recalled the mortgages.
Obviously they could not raise that amount of cash
overnight so the bank foreclosed. This scenario
took place nationwide, worsening the effects of the
Depression.
Nowadays such actions would be unthinkable, banks
would be flooded with property at greatly depressed
values - and little or no cash.
So to my way of thinking, debt is now a claim on
projected future assets as well as current ones.
Debt is also "other peoples money". In some
scenarios the debtor could keep the assets he
borrowed money to buy and the loser would be the
lender or "the other person".
While is it is possible to repo a car or foreclose
on a mortgage. How do you collect on defaulted
student loans, groceries bought on credit, or
bigger ticket items like your daughter's wedding or
that expensive vacation you took. All those items
could be considered forms of wealth that debt
allowed you to enjoy.
Who seriously thinks that the US Gov't will ever
repay the trillions it is borrowing now.
The explosive growth of debt can either mean nothing
to modern monetary theory; or like most of us a
harbinger of economic implosion -like has happened
throughout history. The big difference is that with
fiat currencies there is no claim on anyone's gold.
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bmurphy |
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01-22-2021 @ 5:09 PM
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Joined: Jul 2007
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thanks
and maybe one day soon The Gold Cartel
will blow up and the gold/silver prices
will be allowed to reveal the truth on all of
this
Best
Bill
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jpdell33 |
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01-27-2021 @ 10:38 AM
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Member
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Joined: Jun 2016
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If the world debt does blow up, Governments will
likely seize privately held gold as Roosevelt did.
If they do come knocking at you door, do what the
commies do when cornered - deny, deny, deny! While
they may not break down the doors of Swiss vaults,
they may tunnel into their mountains to make their
own door. If the governments take this action it may
be wise to move the gold quickly to a new and secret
hiding place. If you must surrender it, insist on
getting a full fair price or trade. Remember that as
soon as Roosevelt finished confiscation of private
gold (redeemed for $22.50) he raised its price to
$35.
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