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.
I mean.. You can see on your billing statement who you owe it to.
You owe it to the entity you took out the loan from.
So if a new banking system and current was implemented, I don't see how that would suddenly make the bank say "Oh ok. You don't owe us anymore. We're happy to have given you free money earlier. Thanks"
Wash it away maybe? Fractional reserve lending means only 10% of money exists in deposits. The other 90% is made up
Makes sense, but then that leaves the question of ownership. Say in this example you owed $5K on your car.. If the debt is "washed away" does the bank have the right to repo the car if you don't give them the $5K equivalent of whatever the new currency is?
Yeah that's where I get lost in this too
Same.
Would perhaps we take the full asset range shown in the debt clock photo from the other day, compare relative values of different debt obligations against their prices in the fake system, and value adjust the debt loan into a proportional hard backing?
Wild guess. Probably some other adjustments in the middle of that as well.
Gotta figure that most of the institutions that hold our 'debt' will be washed away at the same time as the fiat. The entire financial landscape will be unrecognizable at the end of this, the holders of debt gone, either bankrupt or found to be predatory and dismantled.
So in your example, you owe 5k on your car but to who exactly? You dont owe it to Ford or GM because they sold that debt the minute it was acquired. So you owe it to a bank that no longer exists? Or some third party collector that has been feeding off the spoils of our misery and is now classified as predatory?
I think we are focusing on one single aspect when there is a huge web of deceit that needs to be considered in its entirety before we can make any assertions.
Its my opinion that the entire criminally fraudulent credit system is abolished and with it all debt. You cant reset global currencies without resetting global credits and debits. Otherwise you are trying to put a square peg in a round hole.
fractional reserve went out the window a couple years ago
In March 2020, the Fed lowered the reserve requirement ratio — the minimum percentage of deposits kept as reserves — to 0%, meaning there’s no reserve requirement for banks. The Fed says it doesn’t have plans to change it, but the ratio can be adjusted. Banks still hold reserves despite not having a Fed requirement [1].
https://www.nerdwallet.com/article/banking/fractional-reserve-banking
Primary source
https://www.federalreserve.gov/monetarypolicy/reservereq.htm
Eyes on this! Huge news that all frogs should know!
Is this why they get so mad when you actually take out a relatively large sum of cash? Because that whole attitude is just BIZARRE. "Can I ask what you need this money for?" Say WHAT?
They didn't have the money first to lend it.
The act of borrowing created the money.
The act of declaring the money void, means you can't pay it back. I borrowed fake fed dollers, if they no longer exist I can't pay them back.
Can't they just say, okay, then you owe us that $ equivalent of the new currency?
Or on another note. Say you had something like a mortgage or a car loan, now the USD is void, what's stopping the bank from repo'ing your car or taking over your house?
They can say whatever they want.
But they have no law to back them up.
Well typically the contract signed with the lender is pretty crystal clear and can be used in a court of law, but I don't know how detailed it is or if there's a "Customer only agreed to pay back loan in USD, but we didn't account for the USD going defunct" type of loophole that lets the customer off the hook. But then that would screw over the bank.
Nothing. Secured debt. They can recover their security if you don't pay for it.
But if the central banks that are the source of the magic imaginary money were found to have been committing wholesale fraud for generations then doesn’t fraud vitiate everything? Thus the banks that borrowed the nebulous idea of a currency from those would not owe it to them and thus like fruit of the poisoned tree it would wend its way through? What doesn’t exist cannot be loaned or borrowed?
How many banks will carry over into a new system or will they all fold and new ones have to be established? I don’t mind paying my debt I borrowed the money but the interest that is outrageous is killing me. Inflation isn’t helping cause what was really good money to our parents doesn’t go anywhere nowadays
You didn't know about interest when you borrowed it? That's the only reason a lender will offer anyone a loan.
Yes I know there is interest but like I have discussed with my mom, she buys a car no for the same price she bought her house in the late 70s. One she has 6 yrs to pay off and the other she had 30. She is like how to we pay one debt off so much quicker but they want to drag the other out
If they were the same price it would be in her "interest" to pay off the house first.
I agree. People keep acting as if they've been forced against their will to take out credit with high-interest rates.
Credit is a privilege. Not a right. I think people have really forgotten that, and think they're being treated unfairly by being charged interest.
What happens if you are retired and senior citizen, no debt, but have money in bank, pension? Does all that evaporate?
Common sense suggests that Trump and the White Hats would not tear down and destroy the financial system of the most powerful nation on earth, and not have already replaced it with something better; and that these are not the type of people who would leave millions of American seniors destitute, their life savings wiped out by the new currency.
Bingo....That's how you can tell people here don't have savings, only debt. Kinda like college students gone wild when they entered the real world.
No, all rightful ownership remains, but it’s carried in the treasury instead of the fed.