You are viewing a single comment's thread from:

RE: The End Of Banking

in LeoFinance3 months ago

With a bunch of Nations in debt, I wonder how debt forgiveness will play out and what the repercussions will be. Watching!

Posted Using LeoFinance Beta

Sort:  

It is simple trickle down economics but in reverse of prosperity.

Sovereign debt will become worthless, hence the nations will not be able to sell it to fund their budgets. This means they will end up defaulting, further necessitating the need to find alternate forms of capital.

Since not only are nations in debt, but individuals, the governments will turn around and start the debt forgiveness at that level. There is one exception: to get it, they will take assets.

So as mentioned, to get rid of, say, student loans, suddenly people will be forfeiting their 401K. Sure they will receive a future promise of payments, just like Social Security. However, as anyone who tries to live on that knows, it is a meager existence.

Most importantly, now the government has control over the assets acquired. They will provide "universal" whatever, aka "free", but there is a cost to it. This is what people miss.

Ironically, this is not economic or financial. Instead, it is political; all about control. COVID added an enormous layer of control to the equation and it is only going to get worse.

Everything is accelerated.

Posted Using LeoFinance Beta