While people are dying of a pandemic and economic consequences, the smart people are talking about how Martians might repo Earth.

      • Lrak [he/him]
        ·
        4 years ago

        I borrow 5 dollars from you, you borrowed these 5 dollars from a buddy and he borrowed it from his sister. We are accumulatively 15 dollars in debt even if there were ever 5 dollars in the whole world. The worlds economic system is fucked obviously and I'm not even sure my analogy applies but it could easily.

    • MichelLouise [he/him]
      ·
      4 years ago

      And if then Z uses that money to pay back a million he owned to X, $3 million worth of debt have been erased while everyone has exactly the same amount of money as before.

    • snackage [he/him]
      ·
      4 years ago

      For that to work you have to have a staggered default. What if Y, Z and A need the money AT THE SAME TIME and X doesn't have any?

        • hogposting [he/him,comrade/them]
          ·
          4 years ago

          Now interest rates are back to zero and Japan and Europe have already tried negative rates and they don’t work.

          Negative rates as in "I borrow $100 today and owe only $99 next year"? Lmao fucking capitalists

          • snackage [he/him]
            ·
            4 years ago

            What you have to understand is that Banks have accounts at the central bank and they can just like you and me keep money on those accounts, overdraw etc. That's actually how the central banks get money into the system: they create the, from thin air and just transfer them to the Banks' accounts. Negative rates work by punishing banks if they don't withdraw enough money from those accounts and get them into circulation. So if a Bank had money on that account that money would start getting less. That's what they called Negative rates. It's a bad name. When rates are positive the bank has to pay back the central bank with interest namely the famous "interest rate" that's for the US Fed at 0% to 0.25% so lol.

            Source: I used to work at a bank. Nothing to do with money mind. Software dev. That stuff was part of the apprenticeship course.

            I might be wrong though so CC @President_Satan to check or add anything.

        • snackage [he/him]
          ·
          4 years ago

          The result of every action is you have more debt then you had before. I'll tell you what will happen: debt jubilee but only for banks. The other side of the coin is a debt jubilee for people but that means a bolshevik style revolution has already happened in either the US or the entirety of the EU-core (lol).

    • eduardog3000 [he/him]
      ·
      4 years ago

      Why not just settle those chains away? Just say X no longer owes Y, Y no longer owes Z, Z no longer owes A, instead X directly owes A.

      Hell, I'd imagine it's possible A owes X $1 million, so $4 million of "debt" represents absolutely fucking nothing.