Smart Girl... | Page 3 | GTAMotorcycle.com

Smart Girl...

And with that I agree 100 %

My point about not being able to repay dept is a bit abstract I admit but let me explain .

If all currancy is created out of dept ie from issuing bonds , credit , whatever , and that created money is requiring interest to be paid , then how can the full amount be paid if more currancy is needed to pay the interest , one would need more money created from dept , there by starting the cycle all over again . Once again this is abstract .

Of course on a individual level or national level , dept can be repayed , if one can use that borrowed money to generate a profit higher than there intrest payment and inflation , while keeping spending in check .



If I did not express my point and if that's what lead to all the back and forth I do apologize again .
 
What the **** is dept?
 
Debt is repaid anytime that a Canadian govt bond is held to maturity and not replaced with a new bond of the same principal amount ( or is replaced with a bond of a lesser principal amount).

That should not be difficult to understand.
 
Yes , and bonds are issued every year .
And because Canada has AAA + credit ratting Canada's payment in intrest is much less than say a country with a lower credit rating .
 
MaxTO said:
Yes , and bonds are issued every year .
And because Canada has AAA + credit ratting Canada's payment in intrest is much less than say a country with a lower credit rating .
Click to expand...

Except that you said the debt can't be repaid. That is patently false.
 
OpenGambit said:
Except that you said the debt can't be repaid. That is patently false.
Click to expand...

No , that is not what I said , or at least it's out of context to what I was trying to get across . Please see above . I was referring to debt on an abstract level .

The money that Canada is paying out on that bond is still debt based , just someone else's debt money . Someone had to take out a loan for that money to come into being .

If company (A) who build houses owes 50 bucks to a bank for the money they used to build the home and they let's say owe 5 buck in intrest they ow 55 bucks .

Now I come along and want to buy the house , so I take out a loan of say 60 ( there selling price ) as the company wants to make some money on there investment . Now I had over the 60 and buy the home . Now I owe the bank . Yes the money was repaid but it was only repaid with more debt money . With the house holding the value to the bank in the event I default .

Our money is based on debt , hence the fractional reserve system .
All our money is debt based and if one person doesn't owe on it another does .

In that sense debt can never be repaid as it's all created from debt


Now for better or worse that is the system we use , and yes it is by no means perfect . But it does allow rapid growth at times but it does have its down sides as well , take our last economical crash for example .

What system would be better , I do not know . Having said that it is important for people to understand how the system works .

And I am not making any claim of being an expert .

Now there was a time when governments were in charge of the creation of new money ( not the bankers ) that wasn't debt based . However , we are no longer on that system . Some would like to see a return to that type of system , would it be better ? Would it be full of its own type of problems ? I do not know
 
Last edited:
I just read through this entire thread (well mostly lol). I have relatively little interest in economics and probably even less knowledge but the first couple of pages of this thread sounded like bullying and posturing. It wasn't until the third page that a real argument against the OP's stated opinion was raised: the national debt cannot be repaid. The rest was just an attack on a dissenting voice from a crowd firmly grasping to their beliefs, right or wrong. I'm not going to debate economics here--because I'd probably lose--but I just wanted to point out that the OP was seeking rational debate and mostly got back a bunch of ridicule.

OP, in theory, what you said about the impossibility of repaying debt makes sense to me only if I accept certain assumptions: 1) that all money is created through debt and is not backed by anything, 2) money is only created through debt and 3) this is a closed system. This, to me, sounds analogous to using a credit card to pay off another card, having zero assets (no house, car, possessions or money banked) and no other sources of income besides more credit.

Now--correct me if I'm wrong (which I very well may be) but--isn't at least a portion of our currency still backed by gold? If so, the possibility of repayment of principle becomes possible, however remote that chance may be. On top of that, Canada has other sources of income outside of our borders and possesses non-monetary assets that can be liquidated. That being said, I would agree that total debt repayment would be difficult but I wouldn't say impossible.

MaxTO said:
Now there was a time when governments were in charge of the creation of new money ( not the bankers ) that wasn't debt based . However , we are no longer on that system . Some would like to see a return to that type of system , would it be better ? Would it be full of its own type of problems ? I do not know
Click to expand...

Isn't this what happened in Iceland?

Oh btw, that youtube clip probably isn't the best way to spread ideas. While there were a couple interesting tidbits in there, I was generally turned off by what I believe is the exploitation of a child to push poorly presented (and possibly researched) material to the public. There was also a hint of religious bias which isn't conducive to rational debate.
 
01cbr said:
Hey ive seen you post some of your possessions on here, you have way too much money to not be a banker.

Your posts should be ignored...your the man keeping us down!
Click to expand...

So you don't want a ride in the Murcielago?
 
01cbr said:
I left out the part about your evil....unless you want to be my friend.
Click to expand...

Thats funny because i Have evil tattooed on my shoulder in Chinese( yeah I did the white person cheesy Asian character tattoo years ago).so yeahhhhhhhhh....
 
sonnythebull said:
Thats funny because i Have evil tattooed on my shoulder in Chinese( yeah I did the white person cheesy Asian character tattoo years ago).so yeahhhhhhhhh....
Click to expand...

Are you sure it doesn't say spaghetti? =P
 
You must log in or register to reply here.

Back
Top Bottom