Message from @Goblin_Slayer_Floki
Discord ID: 524432134996230154
Why would I? There's zero reason to be in debt, except for owning a house
And if you do that right, it will be worth more than you originally paid for it
because females
I would say real estate/car. But the equity of the house will offset the loss on the car.
Never buy a new car. Only get something you can fix easily, and cheaply by yourself
@nutsnax the issue with that idea is the collapse in 29 included the banks. If we were to repeat the debt would be absolved, as banks dissolve.
@Fitzydog not saying new car, but you raise your credit getting a newer car financed and make your payments. Do it on a short loan to minimize interest with a decent down payment.
Oh yeah, that
And not everyone is mechanically apt.
Tbh
Just like not everyone is technologically adapt
Yea my credit score skyrocketed after i finished paying off my last car, which helped when going for a house.
@Goblin_Slayer_Floki you are probably right, though credit availability and companies' ability to fund operations/expansion would grind to a halt.... inter-bank lending would grind to a halt, the banks would go under with these conditions too I think
Well of course. But the overall debt of the individual would be less an issue if the banks themselves (including credit unions) went under.
Pretty sure people of the late 20s had debts as well. Doubt those factored as they fought to survive. But even in those conditions new things were constructed and so on.
And if such were ever to happen it would be a global catastrophe tbh.
Ron paul for all his great aspects, lacks a lot of forsight, and deeper critical thought i jave noticed. Traits he passed to Rand as well.
^ Not like there would be any owner of the title after a massive meltdown anyways
One major difference between 29 and now. FDIC insurance. So at least before total collapse individuals will retain their assets to certain amount per account.
Assuming there's an FDIC left to even pay out insurance
So they'll print more money, exacerbating the problem, causing hyperinflation, until the dollar collapses
Not really. Because as banks crash, the money they had flows back to the fed reserve. But the fdic money is already set aside.
In a sense.
And if that's less than required? Idk, I'm just making hypotheticals
I get what your saying. But one of the things about 29. Is as banks fell, the money they had was collected by the central bank, and disposed of. Since we havent had such since the fdic. I assume similar would happen but rather than distruction, it would be shifted to pay out the fdic insurances
It would still effectibely be worthless if that central bank (fed reserve) collapsed.
Fair enough. I just feel like there's more "magic money" than "real money" (even in federal spreadsheets) out there in circulation
And more so if faith in the currency is fully lost. The true value of a currency isnt how much is in circulation, but overall faith in the currency especially compared to others
Yea over printing devalues due to this. But in some cases say the german marcs they never overprinted. The public faith in the currency compared to the prospects of the euro crashed its value.
And then there's the possibility of the Dollar being derated in its credit rating
That comes with the defaulting as public faith in the value falls. The issue is if the dollar crashes that bad and banks fail, it would send a ripple through the world that will make 2008 and 29 look like a nice summer day.
Especially when the economic crash moves into other aspects like defense, housing, support, ect.
The 08 recession gave a snapshot. It hit everyone from japan to germany. Only those without so much of a private property set up (like china) escaped it. However, this hypothetical one would leave no one unscathed.
a currency collapse could.........technically (in the case of the US) be not so horrendous because what do you typically see when a country's currency is about to fail? I typically see people buying anything that isn't nailed to the wall... well, Americans do that anyway, so you have a country full of physical goods with zero-balance bank accounts...
only problem then is food
Everything would devolve is the issue. Yea you buy it all at once, but then what?
And again, it wouldnt just be the us effected.
oh absolutely, everything would fall apart - people that owe their success to the fiat/financialized/fractionalized system would get wiped out
I'm just saying for the average person with $10k+ in credit card debt when their debts are washed away due to the banking and credit failure...they are sitting on a pile of goods in a time when the only thing of value is what you can put your hands on
(that isn't fiat)