The Angry Jock wrote:Then do you not think people should pay what they can afford rather than just give them a free pass?
Writing debt off means that it'll only happen again as people will think they really don't have to be responsible for their actions.
That's a great point. As I said I was only speaking simplistically, not claiming to have an the answers for all the ins and outs of a solution.
But yes, having people pay off what they can of their debts might be fair way to apportion any necessary contribution to fund the set up of a new system.
Tell all that to Greece. They can't pay off what they can afford. They are being asked to pay off more than they can afford. Spain next. Then you. I am quite an expert at debt since i've been in it for so long. Minimum payments go up and up and you get to a point where you only ever pay the minimum payment. Half of what you pay is interest. ( money invented into the system. )
Look at it this way...
A bank has £100 in real money. It is allowed to lend out 10x that. So it lends £1000 to a loan company. All in an electronic universe. No real money.
That loan company can then lend you 10x that. You could borrow £10,000 from the loan company. Nearly all of it in the electric universe.
Then you pay this back with interest. Say 25% over the term so you pay back £12,500.
So we have real money of £100 blowing up to £12,500 of electronic money. Can't you see the problem here.?
Can't you see why we are being screwed over.?
You will find all economy is based on debt. What is debt.? Invented money pumped into the system.
Its just not right.
Oh and so im clear. I might be paying off my mortgage but im still stuck with a large credit card bill so not free yet.
Just have a chance to reduce the credit card bill over time.
One last thought for you..........
If we all added up our bank balances and went to withdraw it, they couldn't pay us. The banks do not have the real money to cover what we think we have in our accounts. FACT.!