Even I'm surprised. Household debt hits 16 trillion

[Hang on Sloopy]

In consumer finance, it is hard to surprise me after this long

People wondered how people were making it not working and sitting on their crisco bursting arses

This is it. As a mortal enemy of debt, I see a lot of Chapter 7s down the pike

If we never got rid of Debtors Prisons, this would not be happening

Americans are piling up credit card debt as they struggle to keep up with the high cost of living

Americans are piling up credit card debt as they struggle to keep up with the high cost of living.

www.cnn.com

 

[Billy_Bob]

More of the Joe Biden and democrat policies bearing fruits of slavery to debt...

 

[gipper]

When citizens must pay enormous sums for HC and higher education, you can expect high debt loads.

 

[initforme]

In consumer finance, it is hard to surprise me after this long

People wondered how people were making it not working and sitting on their crisco bursting arses

This is it. As a mortal enemy of debt, I see a lot of Chapter 7s down the pike

If we never got rid of Debtors Prisons, this would not be happening

Americans are piling up credit card debt as they struggle to keep up with the high cost of living

Americans are piling up credit card debt as they struggle to keep up with the high cost of living.

www.cnn.com

.

Where are people not working?

 

[Hang on Sloopy]

Where are people not working?

Huh? They were paid to stay home for 2 frikin yrs.....lolol.....Did you miss the Covid era?

 

[initforme]

Those benefits are long gone so they are finding other ways to survive. Good for them if that's the case. If they can make it somehow then we don't need them in the workforce.

 

[georgephillip]

How much debt is too much?

Debt and savings grow exponentially while production does not.
This has been known for thousands of years, yet we are once again at a point where debts that can't be paid won't get paid.

The only question worth asking is which side of the creditor/debtor divide takes the biggest hit?

Debt and Power | Michael Hudson

"The legacy of Roman law is that you can’t cancel the debts, you can’t write them down.

"That means that again and again and again, debts are going to grow too big to be paid without forfeiting your land or forfeiting your liberty and falling into debt peonage, losing your means of support and going bankrupt.

"That’s what we’re facing today. Is society going to say that all debts have to be paid, without regard for the economic and social consequences?

"Almost 90 percent of American debts are owed to the richest 10 percent of the population"

 

[Woodznutz]

Debt is created by inflated dollars, therefore debt can be repaid with inflated dollars.

 

[Woodznutz]

"Almost 90 percent of American debts are owed to the richest 10 percent of the population"

Not so fast. Banks loan out depositor's money, not their own. Therefore, anyone with a saving account is actually a creditor. Also, while most debts are collateralized, that collateral can gain or lose value over time. Consumer goods generally lose value, durable goods can retain or gain value, especially real estate.

 

[georgephillip]

Not so fast. Banks loan out depositor's money, not their own. Therefore, anyone with a saving account is actually a creditor. Also, while most debts are collateralized, that collateral can gain or lose value over time. Consumer goods generally lose value, durable goods can retain or gain value, especially real estate.

Governments and commercial banks create credit on computer keyboards without much regard for democratic process:

Banking Wasn’t Meant to Be Like This, Michael Hudson - Positive Money

"Governments can create new credit electronically on their own computer keyboards as easily as commercial banks can.

"And unlike banks, their spending is expected to serve a broad social purpose, to be determined democratically.

"When commercial banks gain policy control over governments and central banks, they tend to support their own remunerative policy of creating asset-inflationary credit – leaving the clean-up costs to be solved by a post-bubble austerity.

"This makes the debt overhead even harder to pay – indeed, impossible."

 

[Woodznutz]

Governments and commercial banks create credit on computer keyboards without much regard for democratic process:

Banking Wasn’t Meant to Be Like This, Michael Hudson - Positive Money

"Governments can create new credit electronically on their own computer keyboards as easily as commercial banks can.

"And unlike banks, their spending is expected to serve a broad social purpose, to be determined democratically.

"When commercial banks gain policy control over governments and central banks, they tend to support their own remunerative policy of creating asset-inflationary credit – leaving the clean-up costs to be solved by a post-bubble austerity.

"This makes the debt overhead even harder to pay – indeed, impossible."

That's why government spending, in excess of tax revenue income, should be in cash, debt-free, right off the printing press. This would infuse the economy with equity rather than more debt.

 

[JohnDB]

Here is an article that talks about Sri Lanka....

But listen carefully and contemplate the reasons why it happened.

 

[georgephillip]

That's why government spending, in excess of tax revenue income, should be in cash, debt-free, right off the printing press. This would infuse the economy with equity rather than more debt.

If the following quote is accurate...

"In 2005, former Federal Reserve Chairman Alan Greenspan followed that line of thought: 'There's nothing to prevent the federal government from creating as much money as it wants.'"

...was Greenspan correct?

 

[Woodznutz]

If the following quote is accurate...

"In 2005, former Federal Reserve Chairman Alan Greenspan followed that line of thought: 'There's nothing to prevent the federal government from creating as much money as it wants.'"

...was Greenspan correct?

The government can create debt money, or equity money.

 

[Moonglow]

More of the Joe Biden and democrat policies bearing fruits of slavery to debt...

View attachment 677930

Yeah, the US was never in debt before Biden.

 

[Mr Natural]

Yeah, the US was never in debt before Biden.

We can all thank St Reagan for getting the debt ball rolling.

 

[Moonglow]

We can all thank St Reagan for getting the debt ball rolling.

Help out a capitalist today get a loan.

 

[Moonglow]

Not so fast. Banks loan out depositor's money, not their own. Therefore, anyone with a saving account is actually a creditor. Also, while most debts are collateralized, that collateral can gain or lose value over time. Consumer goods generally lose value, durable goods can retain or gain value, especially real estate.

They ain't gettin' much from my creditor account.

 

[Woodznutz]

They ain't gettin' much from my creditor account.

Sorry to hear that.

 

[Moonglow]

Sorry to hear that.

I don't have to worry about defaults.