I understand the importance of living frugally and within ones means. However, shit is hitting the fan for a lot of people and even those who are responsible are having to get creative.
Are we counting on "The Great Reset?" The biggest FU to the banks, go down with the ship? With interest rates at stupid numbers and a financial collapse every 10 years, what the actual fu*k?
Whats the endgame?
Could it be as simple as a new US Government no longer recognizing USD as a currency, thus nullifying all debts? I doubt it, but something would have to give. Think about it, when you take out a loan, pretty sure the contract says it has to be paid in USD. If USD ceases to exist, couldn't the bank just seize your assets instead? I don't see any clear way that debt can be nullified for everyone even if the petro dollar ceases to exist.
Edit: NVM. I think I misunderstood your post
We’re not using USD. We’re using Ferdeal Reserve Notes (of debt)
And in terms of mortgages, no FRNs are issued, just digits on a screen-the 'real' money is how one earns a living and must pay interest (real money) to the lender/collateral holder. Made up 'money' to which we become slaves to usury...
By " real money" are you referring to cash, ie. paper currency?
Gold is real money, everything else is credit.
As ILoveIvermectin stated, We are not using USD today, only FRNs.
Through fraction reserve banking, every time some one takes out a mortgage or any loan. By you signing the document, they create more FRNs and add to the M2 supply. Bank reserves use to be set at 10%, not sure if that amount even exists today. This is one big Ponzy scheme. If credit/loans dry up? So do the banks
https://www.federalreserve.gov/monetarypolicy/reservereq.htm
Is that why lenders want 10% down 🤔
What you received as a compensation for your time and effort is "real money" that unfortunately doesn't do your labor and time justice.
When you sign a mortgage you create FRN's that did not exist until you signed the papers. (fractional reserve banking) The bank has a small fraction of what you borrowed in thier accounts.
Credit card debt is unsecured
What about other debts, like loans?
Right
What are you saying, that those can be nullified too?
You are right though, somethings gotta give. I wonder if evergrande when it finally hits will be a black swan type of event that causes a financial domino effect in crashes?