Will there be a debt reset of everything

Thrugelmir

spencerrothchild said:

If we are to follow the governments example then we are to keep living beyond our means and keep going further into debt

Perhaps the wheels have fallen off post WW2 economic policy. Doesn't mean that existing debt will simply be wiped. Plenty of other courses of action which can be taken to stop the world's financial system from imploding. 

eskbanker

Still missing a few tropes to complete the full David Icke set, we haven't even had any mock-knowing references to fiat currency yet....

spencerrothchild

Thrugelmir said:

spencerrothchild said:

If we are to follow the governments example then we are to keep living beyond our means and keep going further into debt

Perhaps the wheels have fallen off post WW2 economic policy. Doesn't mean that existing debt will simply be wiped. Plenty of other courses of action which can be taken to stop the world's financial system from imploding. 

What other courses of action?

what else could have been done in John Laws French financial crisis to prevent collapse?

spencerrothchild

The world is now going through John Laws financial crisis just the same

Shakin_Steve

spencerrothchild said:

The world is now going through John Laws financial crisis just the same

If I were you, and just to prove my point, I would immediately stop making any payments towards my liabilities. See how that works out. 

MinuteNoodles

D3xt3r5L4b said:

How do you know people are living beyond their means?

That one sadly is easy to answer by the level of unsecured debt which was £428Bn by the end of 2018.
With the exception of your home, buying something on credit you don't have the money to pay for outright is living beyond your means. Being able to afford the monthly repayments is not living within your means. How many of the millions of people who got a new car on PCP last year had the money sat in the bank to be able to buy it at its full price? I expect very few so that's millions of people living beyond their means.

John_

MinuteNoodles said:

D3xt3r5L4b said:

How do you know people are living beyond their means?

That one sadly is easy to answer by the level of unsecured debt which was £428Bn by the end of 2018.
With the exception of your home, buying something on credit you don't have the money to pay for outright is living beyond your means. Being able to afford the monthly repayments is not living within your means. How many of the millions of people who got a new car on PCP last year had the money sat in the bank to be able to buy it at its full price? I expect very few so that's millions of people living beyond their means.

You’ve stuck a very dishonest switch in there, jumping from total amount of unsecured debt to talking about debt beyond what people have saved, without noting the change.

I bought a Mercedes C63 a few years back. I was happy to pay in full, as I had the cash in the bank, but if I financed it they put £10,000 towards it, so that’s what I did. I waited a few months and then paid it all off.

I bought an SL63 in December. A more expensive car, and this time I decided to buy before selling another car, so financed about half of it for a few months.

These debts would be in your first figure, but can’t be used of evidence of living beyond my meansmas you then assert. You need to be consistent with your numbers, and it’s no use adding what you expect in to make a point.

Is 420bn a big number? It certainly sounds it, but it’s about £6k per person, which is a decent chunk, but not totally crazy.

McNinian

spencerrothchild said:

McNinian said:

Theresa May claimed in May 2017 'there is no magic money tree' when asked by a nurse why she hadn't received a cost of living pay rise for eight years. May lied.

There is a magic money tree, it's called QE. It's a process where a government pretends to borrow its own currency from itself which is interest free and never has to be repaid. Before this coronavirus affair the magic money tree had yielded 434 billion quid since 2008. I'm pretty sure Sunak visited the magic money tree during the past month or so. If he hasn't then he soon will... again, again and again because the state can create an infinite amount of pounds at nil cost to pay furloughed workers and anyone else indefinitely. All's required is for some official to type the required amount at a computer terminal then the government is free to disperse it. It's possible because the pound is backed by nothing of tangible value, just as every other currency worldwide is also backed by precisely zilch.

Shhhhh some people don’t like the truth around here

I wasn't aware mentioning the (albeit legal) currency counterfeiting operation is frowned upon by some hereabouts. If so perhaps they would rather not know or don't wish for others to know.

Further to my earlier post, having checked the Bank of England website I now know Mr Sunak visited the magic money tree - that one whose existence was denied by Theresa May - in late March to walk away with £210 billion of new QE which increased the total created from thin air to £645 billion. 

mcpitman

mcpitman said:

spencerrothchild said:

FrugalCat said:

We're currently in an interesting macroeconomic situation: There's strong deflationary forces at work (high debt-to income, economic weakness), but they seem to be balanced by strong monetary intervention and low interest rates. When the balance breaks, historically the way out has been a currency re-valuation. While that would reduce debt levels, it's important to remember that high debt is likely to catch the households out around this usually volatile time - be it through falling relative income or increasing interest rates.

The Cantillon Effect: The influx in money benefits those (the treasuries and governments, then the big lenders) who get their hands on it first and get to spend it before the prices adjust. Those that receive it further down the chain (consumers) will already experience higher prices to go with their extra money.
Look at it this way: Bank prints trillions, most of it goes to banks and private equity first. By the time households receive their usually yearly wage adjustment for inflation, their disposable income has already been squeezed by increased prices.
While debt servicing may be fixed, initially there's less money to service debts. Those without a buffer of disposable income (high debt/income ratio) will default on their debt before they get the chance to see it inflate away.

And that's without taking into account the currently large increase in unemployment or economic slowdown.

99.9% of the debt in the world is being defaulted on, its many trillions 

the 0.1% of the debt in the world that is being paid back is insignificant compared to sovereign and big bank derivatives debts

the only answer is to have a big reset of the system 

And 42.73% of statistics are made up on the spot.

Can you provide some reference links to the above twaddle please?

Or do you think you are in the film Fight Club?

I've asked before, but once more for the record, can the OP post evidence or mildly tenuous links that "99.9% of all debt in the world is being defaulted on"

If you can't evidence that at least try to string some level of argument together.

Without evidence, you sound like a right loony pal!

Brock_and_Roll

Oh the irony that the OP's surname appears to be "Rothchild" - a family whose financial prowess is almost without equal throughout the ages!