Countries can’t default on their debts, paying up is the only way

11 replies 139 views
s33d_moonFull Member
Posts: 235 · Reputation: 715
#1Oct 30, 2020, 09:30 PM
No doubt about it, folks and countries have to settle their debts. The debt in the US, UK, and Europe is massive and needs to be handled through taxes or issuing bonds with higher returns for bondholders. Here's the thing: the so-called great reset is coming. The current fiat system is going down because it’s just not feasible to pay back all this debt. But lenders and bondholders want their cash, plus the interest. Defaulting isn’t an option for the UK or US since they’re seen as global role models. They have to project an image of being responsible and regulated. If they default, the rich will get wiped out fast, and nobody wants that. The wealthy have the power to sway political figures like Trump or Keir Starmer. Lenders will also grab all the assets because many banks and credit institutions don’t actually own the mortgages they owe money to even bigger institutions. The simple fix? People can take out loans again, with stablecoins or crypto, and get mortgages for their lost properties if they put up crypto or stablecoins as a down payment for a "re-mortgage." So if you have crypto or stablecoins, you could use that as a new down payment and then pay your mortgage with USDT or USDC, just like before but without those crazy high rates. The main idea is for people to use their crypto to "pay off their mortgages" because when you borrow, lenders make money from the yields, which they need for passive income. The solution is the great reset, so banks and the world will start using stablecoins, debts will be cleared, and rates will be lower, allowing people to borrow again.
6 Reply Quote Share
cold5tor4geSenior Member
Posts: 349 · Reputation: 1415
#2Oct 31, 2020, 12:14 AM
This is your own theory on debt repayment, Nation that have high rate of corruption will definitely fine it hard to ever excape debt burden as most of the current government keep borrowing despite inheriting a huge debt burden from previous administration date back to start of democracy, my country is an example, and even the tax is not being utilize to offset previous debt or even investing the tax into investment that can at least help lower the debt burden on the national reserves, this is what we are battling with right now and until there is proper debt reform and economic reform it won't change.
1 Reply Quote Share
s33d_moonFull Member
Posts: 235 · Reputation: 715
#3Oct 31, 2020, 02:28 AM
U saying if you borrow money you dont need to pay back ? Off course you need to pay 2 ways assets will be taken gold property even crypto or you make agreement how to settle the debt.
2 Reply Quote Share
cold5tor4geSenior Member
Posts: 349 · Reputation: 1415
#4Oct 31, 2020, 06:29 AM
You need to reread my comment over again to interpret what I said and not taking it the other way around, what I meant ultimately is that debt burden could be avoided if countries learn to offset the inherited debt and avoid taking new debt to sponsor whatever project they're may think of funding with loans, passing debt to future generations should stop developing countries need to wake up to the bad side of foreign and local loans, most especially those with high interests.
5 Reply Quote Share
Posts: 25 · Reputation: 211
#5Oct 31, 2020, 08:53 AM
Well there is many subprime mortgage lenders who are in debt themselfes when margins goes high they are in trouble and off course people who took mortgage or even car loan from them will lose the assets. 2008 was happening and nothing changed system works still the same ways reason why it works its because subprime mortage lenders give more easy the mortgages or car loans if banks who actually owns the assets rights to do it. By your theory: It seems that this time to solve problems and rescue the system they woun't devalue money value and making inflation higher neither they wount let all crashing and causing huge deflation it seems this time assets will be just taken and recycled back to the usage by using new system. Fed repo temporary tool to help markets was just short term solution until they change all system. But...i dont see problem if they want to go over crypto all the crypto guys will be happy because they can "re-finance" again their mortages my question is what if person cant put down the downpayment to "re-finance" mortgage ? Will banks or goverment lending him stablecoins so he will settle for example 30 years to repay it back ?
3 Reply Quote Share
s33d_moonFull Member
Posts: 235 · Reputation: 715
#6Oct 31, 2020, 12:58 PM
Look its business if im the lender i dont want to wait when your kids will grow and pay i want yields. If i position myself with stablecoins bag then im fine i get downpayment right to way if you re-finance your mortage 15%-20% from you and i know i get every month some money from you. In this case we been told about inflation with stablecoins act forget about inflation its deflationary scenario because not many will have stablecoins and those who got will lend others. U need to understood blackrock said and many bankers that there is no grouwth economic grouwth if there is no growth no profit bankers need profit and they wount lift up debt ceiling any higher for longer its time to pay off course many people cant pay then assets will be taken but people need assets so what they do ?? They will make deal to take new debt to "re-finance" their rights to have assets back. And with current job losses many people will lose their assets like home taken with mortgage but bankers will offer them deal because you need home where to live.
6 Reply Quote Share
wildkingFull Member
Posts: 108 · Reputation: 698
#7Nov 1, 2020, 03:19 PM
If you know the most indebted country in the world, you will not use the world "must' in your caption. Most countries will live with those debts, the leaders are not worried that is why the debt continue to grown instead of reduce. Tell me how many countries of the world are thinking of paying back their debt and you will realize that countries prefer to remain in debt than be free. My country is heavily indebted yet the new administration is still borrowing more, the case is the same for many countries.
5 Reply Quote Share
s33d_moonFull Member
Posts: 235 · Reputation: 715
#8Nov 1, 2020, 08:36 PM
Margin calls are coming if i lend you money i want back my money or assets Even if you dont own assets the economic struggle will create domino effect so you will lose your job or business and someone your business partner will lose good business partner because you have to close down your business one reasons because higher energy rent or just highet vat or taxes so and your partner have home on mortgage and here we go it will be taken. U see how it works thats how it works
4 Reply Quote Share
Posts: 3 · Reputation: 138
#9Nov 4, 2020, 03:36 AM
Loan is stealing something of one and obliging to give it back either it is a nation or a person. Every borrower has to repay the loan. That is another thing. Taking a loan and giving it back is not a bad thing to the country but fixing the problems in the economy of a country and repaying the loan back then the country will be free of interest and the country strength sovereignty and world credit will be enhanced. if you do not pay back the loan your country image will be spoilt and no body will give you again.
2 Reply Quote Share
im_sageFull Member
Posts: 139 · Reputation: 484
#10Nov 4, 2020, 03:49 AM
Debt does not automatically disappear just like that, but default is not really the only option either. Countries can manage their debt through inflation, restructuring or longer repayments. An overnight switch to crypto or stablecoins is unlikely. Governments move slowly and want control. In the end, people still pay one way or another through taxes.
3 Reply Quote Share
the_satMember
Posts: 12 · Reputation: 100
#11Nov 4, 2020, 08:14 AM
That is if the debt is huge and then there is lacking of money or sources to pay for. Loan defaulting is bad. It means that we will never pay the loan. So yeah, it is never an option. Managing a debt through inflation by printing more money and making the inflation to rise is bad either but this must be the reason on why a government or a country will have a debt on the others. This is their better option. I remember before, that it takes time for one country or government to follow the other that already adopts crypto. It is like they study it first and that they can minimize potential errors, so they won't regret their decisions but maybe now, time has changed. We already see how quick the adoption have taken place in the latter stages. This is because cryptos have matured too. People must be aware already about their ins and outs.
3 Reply Quote Share
its_cipherSenior Member
Posts: 190 · Reputation: 1319
#12Nov 4, 2020, 11:55 AM
We can come up with a wide variety of debt repayment schemes with all kinds of derivatives such as stablecoins, which differ from the dollar technically, but in an economic sense only increase the money supply. However, the fact is that the debts will never be paid. The dollar's position as a reserve currency is shrinking. Countries are getting rid of treasuries in assets (China has already halved from the maximum). Gold, a reliable reserve asset, serves as a substitute. A huge blow to the dollar was caused by the freezing (confiscation) of Russia's reserves, which showed that the ownership of dollar assets is very conditional. Life in debt at the expense of the entire planet is ending for some countries. The only option left for them is to resort to direct violence against other countries in order to openly take away food and resources.
0 Reply Quote Share

Related topics