Will there be a debt reset of everything

spencerrothchild

Shakin_Steve said:

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. 

I know your being sarcastic but in truth this is not a bad idea

many people and businesses are doing this out of necessity 

spencerrothchild

mcpitman said:

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!

Before 1971 the worlds currency supply could not expand more than the amount of monetary precious metals in the vaults.

after 1971 there was a new “temporary international monetary system” (exact words) based on debt

every single unit of currency created out of thin air has interest owed on it, so new currency needs to be created out of thin in to pay that interest - and so on ......

hence 99.9% of debt in the world is being defaulted on.

i know some people try to confuse and complicate things, but it really is that simple since 1971

this is the same cycle that has repeated for thousands of years and will continue to repeat going from gold and silver over to currency which gets the supply expanded until it collapses and the world goes back to monetary precious metals again 

sassy_one

Debts will still be enforceable.
Things are going to get a lot harder in sense of financial.

nick74

Brock_and_Roll said:

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

To be pedantic, their family name is actually 'Rothschild'. However, 99.9% of people can't spell their own surname. I can't prove that of course, but then you can't prove me wrong either so it must be true..

phillw

spencerrothchild said:

will the be a debt jubilee or debt reset?

Unlikely. Would you agree to having all of your possessions confiscated and bank accounts emptied during the reset?
Some people are being helped, some aren't. That help doesn't constitute a debt reset.

PixelPound

phillw said:

spencerrothchild said:

will the be a debt jubilee or debt reset?

Unlikely. Would you agree to having all of your possessions confiscated and bank accounts emptied during the reset?
Some people are being helped, some aren't. That help doesn't constitute a debt reset.

It seems the lockdown is attracting the normal trolls who appear at school holiday time.

The OP's question should be classified in the same box as all the House Price Crash ones. They believe what they say is right and won't get convinced any other way. 

Brock_and_Roll

Money carries on being lent to government, companies and individuals as long as the lenders think they are likely to get their money back. Once in while there is a crunch and a lot of lenders lose their shirts. There is a period of naval gazing, "must never  happen again etc" then within a few years all this is forgotten and the process starts again, risks increase, lessons forgotten and covenants waived etc etc! 
There will always be people with cash who want a return, and people who need to borrow it.

Brock_and_Roll

Argentina is a classic example - serial defaulter and every time they default you think that people would be made to lend to them again.... but before you know it lenders are queuing up again!

eskbanker

Brock_and_Roll said:

There is a period of naval gazing....

spencerrothchild

phillw said:

spencerrothchild said:

will the be a debt jubilee or debt reset?

Unlikely. Would you agree to having all of your possessions confiscated and bank accounts emptied during the reset?
Some people are being helped, some aren't. That help doesn't constitute a debt reset.

What do you think the reset will look like?

can they rejigger the system and keep people’s debts in the new currency system?

maybe unsecured debt will go away with lots of bankruptcies but secured debt like  mortgages will be revalued in the new currency system