Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
I think this mean freeing up debt and turning the debt into money. You and I do this with property. We finance a "cash out refinance" on our homes. We free up cash at a low interest for spending. We do this with "0% Credit Card offers". We fee up cash for spending at 0% interests rates for X number of months on new purchases or cash advances.
This pushes debt into the future. It also makes one persons debt (you, me or the Fed) another persons income. Debt will have to be paid off the in the future. We do this by - buying less things, earning more income and saving, or selling assets we own - to make these future debt payments.
We need people working to provide goods and services:
The Treasury can make up for people’s lost wages, but people need the things wages buy. So replacing lost wages and revenues will not be enough for long: the economy has to produce goods and services.
Comments
Ray Dalio does a great job at explaining the long and short term debt cycles and there effects on the economy.
I'll post this 30 minutes presentation on how the economic machine works (by Ray Dalio).
Seems worth watching again and discussing:
Debt is such a ubiquitous part of our everyday lives. We all need to understanding the role debt plays in our lives and our portfolios.
How the US Government "Monetizes" Debt:
Some thoughts:
I think this mean freeing up debt and turning the debt into money. You and I do this with property. We finance a "cash out refinance" on our homes. We free up cash at a low interest for spending. We do this with "0% Credit Card offers". We fee up cash for spending at 0% interests rates for X number of months on new purchases or cash advances.
This pushes debt into the future. It also makes one persons debt (you, me or the Fed) another persons income. Debt will have to be paid off the in the future. We do this by - buying less things, earning more income and saving, or selling assets we own - to make these future debt payments.
How the Fed Monetizes the U.S. Debt
We need people working to provide goods and services: Source:
https://seekingalpha.com/article/4345783-simulation-game