RE: Debt is a method of control

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Debt is a method of control

in bitcoin •  7 years ago 

If hyper inflation ever occurs though the debt becomes worthless. Why do you think the Chinese have stopped buying our debt? In a few years it will probably not be worth anything.

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Yes hyperinflation is one way to wash out the debt. But the interest rates can be adjusted to protect against inflation. When interest rates dont grow then then state can only print money in such a case. That however will further push into hyperinflation. It is a well known pattern of past inflation crises together with an acceleration in money velocity.

I think that hyperinflation occurs exactly because the trust in the debt is shaken since that debt is the fundamental building block of our currency.

Buying debt is making a bet on the state, buying bitcoin is betting against.

Chinese have stopped buying our debt

Debt is not just that - U. S. treasuries. Look at any USD - it says: "Federal Reserve Note" and "In God We Trust". A "note" is a debt instrument, a negotiable debt instrument.

So, what most people called the USD "money" is incorrect- every USD is an IOU and you exchange one IOU for another thinking that they are money.

If hyper inflation ever occurs though the debt becomes worthless.

It has already become worthless! In 40 years, a U$D can now only buy $0.05 worth of goods. From 100 cents to 5 cents - would you call that becoming "worthless" I do. It certainly is "worth less".

the thing is when the debt inflates they just use that as an excuse to make even more debt. The number of debts as a function of gdp has increased a lot in the past years.

BTW, freedom = no more debt of any kind. I think we are all on the "freedom train" or the "freedom shift". I am here to look for like minded people and perhaps collaborate and form a "freedom-shift" group to educate people about such matters.