tag:blogger.com,1999:blog-2992740250270600844.post5298712777405628445..comments2024-03-24T05:26:32.964-07:00Comments on Advancing Time: Debt A Mirage Always Moving Into The DistanceBruce Wildshttp://www.blogger.com/profile/10181323607060607040noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2992740250270600844.post-55381433328623728182015-02-09T09:12:48.840-08:002015-02-09T09:12:48.840-08:00Debt is about trust.
We sit at a phenomenal apoge...Debt is about trust.<br /><br />We sit at a phenomenal apogee of collective trust. Prechter's work suggests that such things are governed by endogenous cycles of human mentation, and if he's right, it will be one for the record books when collective DIS-trust makes a major comeback and people sequentially devalue and ultimately reject one subset of debt after another, starting with the most dodgy and ending only once even government debt has been cut down to a believable size.<br /><br />John Law had nothing on our modern central bank alchemists.dc.sunsetshttps://www.blogger.com/profile/08826161742700965939noreply@blogger.comtag:blogger.com,1999:blog-2992740250270600844.post-72685573772300905762014-06-01T07:13:50.824-07:002014-06-01T07:13:50.824-07:00This is a good analysis of the mirage that shows t...This is a good analysis of the mirage that shows that the bad participant in the transaction is the debtor. <br /><br />I'd like to add that on the other side of the exchange that there are transactions where the creditor is the master of the mirage. For example, if the currency itself is loaned from counterfeit and not money as in the case of fractional reserve banking. The new currency that enters the economy does not come from productive work but instead its source is a digital blip and therefore it does not represent products added to the economy. The debtor receives this currency from the creditor and proceeds to do work and add products to the economy. Assume the the debtor does not default and does pay back the debt in full, plust interest.<br /><br />Where is the harm done, the mirage? The creditor by pumping counterfeit necessarily decreases the purchasing power of everyone who uses the currency, even himself. However, the creditor's incentive is to collect back the full principal repaid by the debtor. The creditor has exchange nothing for something. The loss of everyone's power to purchase is therefore the creditor's gain. That is theft too.OC Surehttps://www.blogger.com/profile/03765579010816482659noreply@blogger.com