To austerity or to not austerity....

[Pyraxis]

Isn't the debt inextricably linked to the economy?




(in ways I understand very little about)

[odeon]

Yes, the value of money is only imaginary. Economy works just beacuse almost everyone acts like money had any real value. Pretty bizarre.

We need to replace fiat currency with money that has REAL value, like silver certificates or something like that.

Money came about partly to represent something that was too heavy to carry around. The value of silver is just as imaginary, if you think about it.

[McGiver]

A just society will meet the needs of the least of its citizens....food, clothing and shelter.

Barter with paper all else.

[TheoK]

A just society will meet the needs of the least of its citizens....food, clothing and shelter.

Barter with paper all else.

Sweden has done that for many years.

From the Instrument of Government:

"Article 2.
Public power shall be exercised with respect for the equal worth of all and the liberty and dignity of the individual. The personal, economic and cultural wellfare of the individual shall be fundamental aims of public activity. In particular, the public institutions shall secure the right to employment, housing and education, and shall promote social care and social security, as well as favourable conditions for good health.
---"

[RageBeoulve]

Simplify the shit.

Lets turn all this shit into two cavemen. One caveman gets lucky (Caveman A) and digs up a few more roots than the other one. The other one is unlucky (Caveman B) and doesn't really have enough to eat.

Caveman A says UNGH UNGH and gives Caveman B a few of his roots. They chow down, but now caveman B is indebted to caveman A. Caveman A goes on to to this to everyone, because he's just a lucky bitch like that. Fast forward about 20 years. Caveman B makes knife out of flint. Its really useful. All of the sudden caveman A walks up and takes the shit, because everyone is indebted to him. Nobody argues. Now caveman A is owed a bunch of favors, and has a powerful tool. Fastforward five years. Caveman A is fucking alpha. He pretty much owns everything, and all the other cavemen are pretty much only "allowed" to use their own inventions and eat their own food cause he's such a super guy.


Geddit?

[McGiver]

Gfy, mitt.  Those entitled fuckers need to recognize.

[El]

Isn't the debt inextricably linked to the economy?




(in ways I understand very little about)

Exactly the issue- your average layperson in America doesn't know exactly how debt vs. the economy works, but if the media connects them enough, assumes they are connected.

[Pyraxis]

Do you think they're not connected?

[Al Swearegen]

"Give me a lever long enough and a fulcrum on which to place it, and I shall move the world" Archimedes

Like everything financial, there is often great and simple way to effect desired results but not adhering or being able to adhere to "the plan" throws this under a bus.

Leveraging debt is a great way of building wealth and we see this with savvy investors

Investor A saves for a year and saves up $10000 that he wisely invests in great performing stocks over the course of two years they raise 30%

Investor B copies him but at the start of year two takes out a personal loan of $10000 and invest that in the shares too.

Investor A

$10000 x 130% = $13000 worth in year one
$13000 x 130% (+ $10000 saved over that year) = $26900 end of year two

Investor B

$10000 x 130% = $13000 worth in year one
$10000 of loan proceeds + $13000 = $23000 x 130% = $29900
Hangon what about $10000 debt? Well Investor two was saving paying $232.68/month for 14% interest rate on his $10000 five year personal loan. So whilst he was not able to put $10000 into the shares at the end of the month like investor A. He could put in ($10000 - [$232.68/month x 12 months] = $7207.84)

So yeah Investor A is carrying no debt and Investor B is, but investor B is able to easily service it and is building wealth .

Investor A after 2 years - $26900
Investor B after to years- $29900 + $7207.84 = $37107.84

If they invest the same then over the next 5 years Investor b will have no debt and higher wealth than Investor A who did not take on debt. Without leveraging debt, people cut out a primary way to wealth. Done badly or if bad luck strikes Investor B's downside is greater.

Countries are the same on a larger scale