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Post by SA Hunter on Jan 27, 2018 23:35:33 GMT 10
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Post by spinifex on Jan 28, 2018 14:32:28 GMT 10
She'll be right mate!
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Post by graynomad on Jan 29, 2018 18:37:58 GMT 10
It seems that the whole world is in debt...can someone please explain to me in words of one syllable or less who the f*ck we are in debt to, the Martians?
Governments can create money out of thin air, so why the debt?
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fei
Senior Member
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Likes: 876
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Post by fei on Jan 29, 2018 20:33:24 GMT 10
Too many people buying crap they don't need or pumping cash into property in the hope that an immigrant will buy it at twice the price in 5 years time.
I'd really like to see what would happen if the immigration department actually stopped allowing tens of thousands of people in every year and the market for all these over-priced and often crap quality houses died. Then again, maybe not, as the economy would probably die too.
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Post by spinifex on Jan 30, 2018 19:19:14 GMT 10
It seems that the whole world is in debt...can someone please explain to me in words of one syllable or less who the f*ck we are in debt to, the Martians? Governments can create money out of thin air, so why the debt? Well ... you know that top 0.001% of the world richest? That's where the debt payments ultimately flow to. Thats why as debt skyrockets their income skyrockets and the wealth gap opens up accordingly. Governments can't create debt out of nothing (would solve many problems if they could but creates risk too). Only central banks can create new money. Worth noting the US federal reserve is infact a consortium of private banks! The most interesting thing about western monetary systems is that the system HAS to create more debt to service the previous debt. It's totally unavoidable and a fixed feature of the monetary system because of the need to make 'interest' payments. Example: In a super simple 2 person economy: I am reserve bank, I create 'money' by issuing debt. We both start with zero 'money'. You come to me and ask for $10. I generate the $10 and give it to you on say 10% per annum interest terms. After 12 months you still have the $10 I created (There's no-one else but me to spend it on) and the $10 debt to me PLUS you owe me an extra $1 in interest payment. Where must that extra $1 come from in our two person economy? Obvious ... you need to borrow that $1 off me. You give me back the first $10 cancelling out the original debt ... and pay me the $1 interest ... but you are still left with the $1 debt! How do you get the money to pay that debt? You can only borrow it from me! Hey presto .... perpetual motion debt engine! I've learned about this from experts ... the scenario I describe here works exactly the same on the large scale ... all the interest payments ultimately fuels new debt. The difference in current times is that some idiot sold the insane idea of 'Too big to fail'. This prevents the only other mechanism for preventing perpetual debt creation: Debt defaults. Defaults are actually important for the correct function of our monetary system. If we weed out defaulting entirely debt can only keep growing to truly gargantuan proportions and interest rates must fall to zero to keep the system on life support. Which is where are at now pretty much. |
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fei
Senior Member
Posts: 604
Likes: 876
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Post by fei on Jan 30, 2018 19:58:56 GMT 10
It seems that the whole world is in debt...can someone please explain to me in words of one syllable or less who the f*ck we are in debt to, the Martians? Governments can create money out of thin air, so why the debt? Well ... you know that top 0.001% of the world richest? That's where the debt payments ultimately flow to. Thats why as debt skyrockets their income skyrockets and the wealth gap opens up accordingly. Governments can't create debt out of nothing (would solve many problems if they could but creates risk too). Only central banks can create new money. Worth noting the US federal reserve is infact a consortium of private banks! The most interesting thing about western monetary systems is that the system HAS to create more debt to service the previous debt. It's totally unavoidable and a fixed feature of the monetary system because of the need to make 'interest' payments. Example: In a super simple 2 person economy: I am reserve bank, I create 'money' by issuing debt. We both start with zero 'money'. You come to me and ask for $10. I generate the $10 and give it to you on say 10% per annum interest terms. After 12 months you still have the $10 I created (There's no-one else but me to spend it on) and the $10 debt to me PLUS you owe me an extra $1 in interest payment. Where must that extra $1 come from in our two person economy? Obvious ... you need to borrow that $1 off me. You give me back the first $10 cancelling out the original debt ... and pay me the $1 interest ... but you are still left with the $1 debt! How do you get the money to pay that debt? You can only borrow it from me! Hey presto .... perpetual motion debt engine! I've learned about this from experts ... the scenario I describe here works exactly the same on the large scale ... all the interest payments ultimately fuels new debt. The difference in current times is that some idiot sold the insane idea of 'Too big to fail'. This prevents the only other mechanism for preventing perpetual debt creation: Debt defaults. Defaults are actually important for the correct function of our monetary system. If we weed out defaulting entirely debt can only keep growing to truly gargantuan proportions and interest rates must fall to zero to keep the system on life support. Which is where are at now pretty much. Yep, I've been listening to a bunch of podcasts recently about this stuff, and only then realised the Fed is a consortium of banks. Shows who really drives the US - not Congress - but the 0.001%ers who run the banks and hold all the debt. Its only in the last few years that I've come to realise how dysfunctional the US is, with the veneer of government just being there to keep the rest of the population happy. |
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Post by doomsdayprepper4570 on Feb 11, 2018 14:24:31 GMT 10
Just be like america and just print as much cash as you want and pay off your loans!
Ooops. sorry cancel that idea, just print the money and spend it on something else.
That is why we have no inflation to speak of here.
But packages get smaller and the price slowly creeps up while the contents go down.
That is zero inflation the way politicians see it!
Dumb as dog poo.
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