It seems like a new banking system backed by something tangible again like how it was in the 1800's and prior would be a good move but would those of us in debt still be in debt to the banks? If not, how would our debts magically be absolved?
Example, say you owe money on your car and you have a ton of outstanding debt to a bank or credit lender. How exactly does implementing a new system of banking nullify this? Can't the bank still say "Since the USD is defunct, now you owe us the "New US Treasury Certificate" equivalent of that amount"?
I just can't quite put 2 and 2 together how the new currency would be debt free without older debts being absolved first.
The concept of debt is fairly simple. You wanted or needed something that you did not have the resources to acquire with your own wealth, regardless of what that monetary instrument is. Imagine you traded labor hours between yourself and a builder. You promised to pay 100 hours of labor (of whatever your skill is) for them to build you a garage. You put in a clause that says that the term of the contract is for one month. Additionally, you have a clause that all the work from both parties must be completed within one month. A penalty for any time over one month is put in place and is agreed to, by both parties. They sign a contract and the work begins. This is a direct labor exchange and is a form of barter. Any monetary instrument is a substitute for a direct barter system. It doesn't matter what instrument is. It is a form of barter. People don't want to hear that they still owe a debt because many people have accumulated a very large debt. This type of contract is a promissary note. You have bound yourself to a contract. Debts and contracts do not magically disappear because the monetary instrument changes. It isn't popular, but if you signed a promissary note, it is honorable for you to fulfill that note. If you do not, we have put in place a system to exact penance on behalf of the other party. This is how it is required to be done because of dishonorable people that do not honor their promises. Even if the new monetary system changes, it would be anarchy and chaos if all debts were wiped. People like to think that not paying for something isn't hurting someone else, they think stealing from a business or a bank (which is simply a consolidation of other peoples money). You are basically a communist. Take from everyone else to pay for stuff for you. Are the banks corrupt, YES. Are corporations corrupt, YES, is the basic foundation of the system invalid, NO. Throwing out the whole system because some people have cheated the system is juvenile and ignorant. Throwing out the system because you have promised more than you can pay back is even more idiotic. Pay off all your debts and learn to live within your means. If you can't afford to pay to live, you have to look at alternatives to either making more money or finding a new place to live that is cheaper, where the income from your skill will allow you to make enough money to survive and possibly even thrive.
Thanks for articulating how I feel and our reality such as it is.
Can't afford it? Don't buy it. Wow no debt with that evil interest applied.
Need a loan? Understand up front the contract you are agreeing to.
The one thing we should be teaching to all children is home micro economics. Macro is great, if only for edification reasons, but learning micro economics helps to avoid debt slavery. Things are so expensive because we can get loans everywhere. College used to be far cheaper until the Federal government got involved in student loans. Taking out any loan without financial analysis is like playing Russian roulette.