Monetizing the debt in order to repudiate the debt

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Tightwad
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Monetizing the debt in order to repudiate the debt

Post by Tightwad »

When it comes to Gov't's it is possible to print so much money (monetizing) that it causes money to become worthless (inflation) so as to repudiate (deny or refuse to pay) the debt.

Don't think that such a thing it possible?

Think again 'cause it's not only been done before but it's in process now to erase trillions of dollars in inflated debt. The ablility to print money and thus erase debt make all this talk today just that talk. What the public sees is nothing more than the 3 card monty with the gov't holding the hole card. It's all smoke and mirrors so why worry about it?

An understanding of how this is done does take some study........

Monetizing the Debt - Explanation For Non-Economists, Bankers and Other Laymen | The Prudent Investor

Read the IMF document included.......

Hyperinflation As A Debt Repudiation Device? No According To UBS, Yes According To Recently Declassified IMF Paper | zero hedge

Read section C.....

Foreign Debt: Forgiveness and Repudiation

There are other documents online but it is possible for gov't to borrow their way out of debt and own nothing. All you need is a printing press. This is also why no one has been able to audit the FED since doing so will expose the whole sham.
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Bryn Mawr
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Monetizing the debt in order to repudiate the debt

Post by Bryn Mawr »

Tightwad;1325992 wrote: When it comes to Gov't's it is possible to print so much money (monetizing) that it causes money to become worthless (inflation) so as to repudiate (deny or refuse to pay) the debt.

Don't think that such a thing it possible?

Think again 'cause it's not only been done before but it's in process now to erase trillions of dollars in inflated debt. The ablility to print money and thus erase debt make all this talk today just that talk. What the public sees is nothing more than the 3 card monty with the gov't holding the hole card. It's all smoke and mirrors so why worry about it?

An understanding of how this is done does take some study........

Monetizing the Debt - Explanation For Non-Economists, Bankers and Other Laymen | The Prudent Investor

Read the IMF document included.......

Hyperinflation As A Debt Repudiation Device? No According To UBS, Yes According To Recently Declassified IMF Paper | zero hedge

Read section C.....

Foreign Debt: Forgiveness and Repudiation

There are other documents online but it is possible for gov't to borrow their way out of debt and own nothing. All you need is a printing press. This is also why no one has been able to audit the FED since doing so will expose the whole sham.


Two questions :-

What currency is the debt in? (it's no good devauing the Dollar if you have to pay in Renminbi).

What is your current rate of inflation? (Printing money tends to lead to hyperinflation, see Germany in the 30s, but it is not the only driver and it is not in the Fed's interest to allow it. Whilst it can mitigate debt it has a lot of downsides, see Germany in the 30s).



As a point of principle I dislike the idea of printing money without having the assets to redeem it (Quantative Easing) to get out of the credit crunch but I see no evidence that the intention is to promote hyperinflation to repudiate the debt.
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Tightwad
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Monetizing the debt in order to repudiate the debt

Post by Tightwad »

Bryn Mawr;1326000 wrote: Two questions :-

What currency is the debt in? (it's no good devauing the Dollar if you have to pay in Renminbi).

What is your current rate of inflation? (Printing money tends to lead to hyperinflation, see Germany in the 30s, but it is not the only driver and it is not in the Fed's interest to allow it. Whilst it can mitigate debt it has a lot of downsides, see Germany in the 30s).



As a point of principle I dislike the idea of printing money without having the assets to redeem it (Quantative Easing) to get out of the credit crunch but I see no evidence that the intention is to promote hyperinflation to repudiate the debt.


I have to wonder if you read any of the text offered? Long I know but this is a complex topic and full of what if's.........
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Bryn Mawr
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Monetizing the debt in order to repudiate the debt

Post by Bryn Mawr »

Tightwad;1326026 wrote: I have to wonder if you read any of the text offered? Long I know but this is a complex topic and full of what if's.........


Guilty :-(

Not my normal way of working but I was strapped for time last night and I made an assumption based on the message rather than the links and some of the guff I've been hearing recently by way of conspiracy theories. Obviously an unwarrented assumption for which I apologise.

As I get some time I'll read the links and get bck to you.
gmc
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Monetizing the debt in order to repudiate the debt

Post by gmc »

Posted by tightwad

There are other documents online but it is possible for gov't to borrow their way out of debt and own nothing. All you need is a printing press. This is also why no one has been able to audit the FED since doing so will expose the whole sham.


No it's not sooner or later they have to pay the piper - just ask the greeks - and it's doubtful the US will have a rich European country ready to bail,them out out. The security for govt debt is future tax revenue and since most of your industrial base is now abroad and you have mass unemployment you have to wonder where the jobs are going to come from to pay people so they can pay taxes to pay the debt. America became wealthy as a trading nation making things.

At the heart of al this is an insane economic theory called monetarism that all you needed to do to be wealthy was sell money to each other and it didn't matter if there was no real asset at the back of it all and when the bubble burst the taxpayer was the one expected to bail out the pillocks that caused it all. What is depressing is we got sucked in to it as well. Anyone with half a brain could see where it was all going. people were warning about ninja loans and re-securitisation for years before it all went belly up. You don't have a capitalist economy any more you just think you do.

Takes a while to load for some reason

YouTube - ‪Don Reynolds speaking on Ninja Loans‬‎

It's all bloody thatchers fault - The day she said we don't need industry but can prosper as a service economy and there is no such thing as society you just knew we were in the shits, what does a service economy service? Money doesn't exist it's merely a convenient medium of exchange. Unbelievably gordon brown just made things worse.

YouTube - ‪Tony Benn -- The issue is Thatcher‬‎
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Accountable
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Monetizing the debt in order to repudiate the debt

Post by Accountable »

priya05;1349499 wrote: I have to say that in truth it was all my own fault.
Well, at least we've found the root of the problem.

I don't think it's really possible, either, not with the world's biggest debtor. But it doesn't matter whether it's possible or not; it's not ethical. I understand that money itself is a nebulous philosophical concept to government officials. It doesn't really exist in the physical world until it gets down to the individual, but the principles we live by are more valuable than money, and should not be discarded when they seem burdensome. Decisions have consequences. We should pay our debts.
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Bryn Mawr
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Monetizing the debt in order to repudiate the debt

Post by Bryn Mawr »

Accountable;1349504 wrote: Well, at least we've found the root of the problem.

I don't think it's really possible, either, not with the world's biggest debtor. But it doesn't matter whether it's possible or not; it's not ethical. I understand that money itself is a nebulous philosophical concept to government officials. It doesn't really exist in the physical world until it gets down to the individual, but the principles we live by are more valuable thatn money, and should not be discarded when they seem burdensome. Decisions have consequences. We should pay our debts.


Totally agree - everybody, big or small, should take responsibility for their own actions and deal with the consequences.

If you don't live by your principles then you don't have any.
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