Armed Polite Society
Main Forums => Politics => Topic started by: AZRedhawk44 on October 29, 2013, 09:04:41 PM
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...and so do I.
http://rare.us/story/your-share-of-the-national-debt-is-now-1-1-million/
*expletive deleted*ck that.
http://mises.org/daily/1423
Repudiate the debt.
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Take a check?
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Take a check?
Post dated, of course.
For 9/9/9999.
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Will you take it in pennies? [tinfoil]
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It will be repudiated, eventually. What can't go on forever, won't. Debts that cannot be repaid, won't be.
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So, will debts be indexed to whatever follows the reichsmark? If I owe a quarter million FRNs on my house, and this represents, say, 2 year's gross income. We go all Weimar, and a quarter mil becomes the price of a Big Mac... D'ye think I could waltz into the mortgage holder, hand 'em a silver dime (or the proceeds from selling a silver dime) and clear my debt? Just wondering before I go check the couch for change.
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So, will debts be indexed to whatever follows the reichsmark? If I owe a quarter million FRNs on my house, and this represents, say, 2 year's gross income. We go all Weimar, and a quarter mil becomes the price of a Big Mac... D'ye think I could waltz into the mortgage holder, hand 'em a silver dime (or the proceeds from selling a silver dime) and clear my debt? Just wondering before I go check the couch for change.
This is something I am curious about as well, as a mortgage holder, and is a major reason I own rather than rent: I believe that inflation is likely to pressure rent higher, whereas a 30 year mortgage is contractually fixed. I guess the GM bond fiasco has demonstrated the value of contractual law, though.
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That is the crux of why small inflation can be good for the economy and even the slightest hint of deflation is so dangerous.
Slight inflation makes taking on debt more palatable. Its easier to pay down today's debt with tomorrows inflated money and inflated wages, especially at fixed rates.
During deflation, taking on debt is gut wrenching risky because wages are decreasing while the contractual debt is fixed.
More debt = more consumption = more jobs for everyone... until the bubble pops like 2007