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What if every single American stopped paying their bills? Credit cards, utilities, cell phone, cable, insurance, mortgage. Everything.
What would happen in 3 months? A year? 5 years?
How would this change the economy? Would businesses be forced to drastically change the way they do business, the interest rates they charge?
How would all this extra money in the public's pocket affect things?
Looking for serious, yet hypothetical, answers.
I'd imagine it would be difficult to find people willing to do business with Americans. All the jobs would leave and we'd quickly become a third world country.
I'd imagine it would be difficult to find people willing to do business with Americans. All the jobs would leave and we'd quickly become a third world country.
Excuse me...but isn't this what's happening anyway?
Keeping Americans indebted is a Ponzi scheme. The money they "borrow" is made up on the spot, digitally. It doesn't exist. But it's very real, when it comes time to pay it back. This is a method of transferring the earnings from the labor of Americans, to the pockets of the bankers and the corporations. It is not sustainable, as the "money" created by the borrowing does not include the interest due on repayment. So the bills we run around on a treadmill trying to pay, are essentially un-payable. We need to keep borrowing more and more, getting deeper in debt, to keep the system going.
We are getting so far 'out there' with this credit expansion, that the law of diminishing returns is kicking in. That's why the Fed has to print (QE to infinity) faster and faster, just to keep up. Those who say it would lead to a "contraction" (and how!) are correct, but they are not figuring that it will come about anyway, sooner rather than later. It's not a doomsday prediction. It's just mathematical fact.
Excuse me...but isn't this what's happening anyway?
Keeping Americans indebted is a Ponzi scheme. The money they "borrow" is made up on the spot, digitally. It doesn't exist. But it's very real, when it comes time to pay it back. This is a method of transferring the earnings from the labor of Americans, to the pockets of the bankers and the corporations. It is not sustainable, as the "money" created by the borrowing does not include the interest due on repayment. So the bills we run around on a treadmill trying to pay, are essentially un-payable. We need to keep borrowing more and more, getting deeper in debt, to keep the system going.
We are getting so far 'out there' with this credit expansion, that the law of diminishing returns is kicking in. That's why the Fed has to print (QE to infinity) faster and faster, just to keep up. Those who say it would lead to a "contraction" (and how!) are correct, but they are not figuring that it will come about anyway, sooner rather than later. It's not a doomsday prediction. It's just mathematical fact.
2008 did indeed prove it was not doomsday. But we came close. Hopefully next time this chaos will be a bit more subdued. But it is bound to happen again, as these are the cycles of business.
There is too much money to be made in lending for it to ever stop. Otherwise we would already have Lincoln's dream of a gov't supplying all the money we citizens and businesses need.
'The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity.'-Abraham Lincoln
Excuse me...but isn't this what's happening anyway?
Keeping Americans indebted is a Ponzi scheme. The money they "borrow" is made up on the spot, digitally. It doesn't exist. But it's very real, when it comes time to pay it back. This is a method of transferring the earnings from the labor of Americans, to the pockets of the bankers and the corporations. It is not sustainable, as the "money" created by the borrowing does not include the interest due on repayment. So the bills we run around on a treadmill trying to pay, are essentially un-payable. We need to keep borrowing more and more, getting deeper in debt, to keep the system going.
We are getting so far 'out there' with this credit expansion, that the law of diminishing returns is kicking in. That's why the Fed has to print (QE to infinity) faster and faster, just to keep up. Those who say it would lead to a "contraction" (and how!) are correct, but they are not figuring that it will come about anyway, sooner rather than later. It's not a doomsday prediction. It's just mathematical fact.
It's clear you don't know what a "Ponzi scheme" is
What if every single American stopped paying their bills? Credit cards, utilities, cell phone, cable, insurance, mortgage. Everything.
What would happen in 3 months? A year? 5 years?
How would this change the economy? Would businesses be forced to drastically change the way they do business, the interest rates they charge?
How would all this extra money in the public's pocket affect things?
Looking for serious, yet hypothetical, answers.
Well, first of all it obviously would never happen. That said, it would just be a larger example of what does happen to people that habitually do not pay their bills.
Huge deposits to turn on utilities. If you don't pay, no biggie. It comes out of your deposit which is large enough to more than cover the cost of the utilities before they shut them off for non-payment.
No credit cards.
Buying of things like cars relegated to BHPH dealers that overcharge for the car and charge 20% or more interest. I have a friend paying the same amount for car payments on a six-year-old car (Prius) as I pay on my brand-new one. Why? He trashed his credit when he was young and it takes a long time to rebuild.
Rent you'd get evicted. With everybody not paying rent, real estate prices would crash. Cash buyers would scoop things up but renting would be on different terms. No more leases. You'd operate on a boarding house day to day, week to week rate. Pay for a week or night up front. No pay, kicked to the curb. None of this eviction crap.
Money would get burnt pretty quickly. Living night to night is expensive.
Just look at how the population lives that doesn't use banks. Check cashing places and a cash economy. It's a rip off. Which is why it would never happen. The smart people would buy up some assets (houses) and turn them into flophouses, night to night rentals.
Basically, what happened in 2007-8 on a much larger scale.
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