What would happen if all debt to banks was dropped?

Discussion in 'Politics' started by Luvs2splooj, Nov 25, 2011.

  1. Watched Fight Club again recently and it had me wondering.

    Would there really be that much anarchy? Or would that bank company get fucked but everyone that had debt be helped out?
     
  2. Well Fight Club made it look way too easy. I am sure they would have hidden backup servers. But yeah there would be anarchy for a bit after all the debt records were destroyed. But then you would have a government crackdown and probably some outrageous laws passed like you must report your debt to the bank within 30 days or you become an economic domestic terrorist. Either that or the banks would just steal all the peoples money and not allow anyone to withdraw their savings.
     
  3. Debt allows growth beyond what is capable without it. A lot of that debt is why we are so wealthy nowadays!
     
  4. It wouldn't help anyone, because the money never actually existed in the first place. It was produced as part of the multiplier effect that banks create when they loan 10 times more money than they have.

    "Erasing" debt is essentially inflation. It's as if the government just gave out money to pay back everyone's loans. Prices would go up, the Fed would lower interest rates, people would go back to borrowing, the rich would get richer.


    Fight Club - fun movie to put on in the background while doing something else...valuable economic lesson? not so much
     
  5. I didn't mean if it happened like it did in fight club.
    I mean all the people that are barely getting by because they're in debt, what if the banks/credit card companies were just like, yea you don't owe us anymore.
     
  6. I didn't mean if it happened like it did in fight club.
    I mean all the people that are barely getting by because they're in debt, what if the banks/credit card companies were just like, yea you don't owe us anymore.
     
  7. Some people get happy some mad, it's all fake.
     
  8. Bailouts destroy the value of your money, prices go up, standard of living goes down.

    Bankruptcy sucks, but you have to liquidate the debt once its unsustainable.

    You can have prolonged economic pain via bailouts, or a sharp and quick downturn from debt liquidation.

    If you were looking for a way to have your cake and eat it too, sorry to break it to you but it doesnt exist.
     

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  10. #10 maxrule, Nov 26, 2011
    Last edited by a moderator: Nov 26, 2011
    Did you happen to notice how much that movie pointed to the WTC attacks?

    Watch it again. They say things like 'ground zero', 'breath smoke' ... and they are running a covert operation at the WTC.

    " Life insurance pays off triple if you die on a business trip"



    Just like the Matrix; it's a 1999 movie.

    They wired financial buildings to collapse straight down...:rolleyes:




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    [ame="http://www.youtube.com/watch?v=Y4XgYxluY9I"]fight club and 9/11 - YouTube[/ame]
     
  11. I'd like to loan you a trillion dollars at very low interest.

    Just think how wealthy you will be. :wave:
     
  12. I'm still kind of wondering what would happen.

    If ALL debt to, lets just say credit card companies, was dropped, BY the company(say they just felt like it). Would it have any negative effects on anyone but the company?
     
  13. When the company fires half its staff or worse folds, yes it effects you.

    And dont hold your breath, they loaned you money, you owe them. Asking them nicely isnt going to cut it.

    Better yet, dont live off your credit card, if you cant afford it then too bad.

    Theres this thing called savings, its a good investment.
     
  14. I'm just speaking hypothetically, I have no debt.
     
  15. Didn't mean to come off as condescending, I was just speaking in general terms with "your".
     

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