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.
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?