Editing Talk:1971: Personal Data

In healthy economy it's not necessary to force people who wants to save their money to spend it. Inflation is a way to force responsible people to behave just as irresponsible and short-sighted as government itself. But our current economy is build on debt and is definitely neither healthy nor intuitive ... nor sustainable ... see [https://www.youtube.com/watch?v=4AC6RSau7r8 Money as Debt] -- [[User:Hkmaly|Hkmaly]] ([[User talk:Hkmaly|talk]]) 22:26, 23 March 2018 (UTC)

In healthy economy it's not necessary to force people who wants to save their money to spend it. Inflation is a way to force responsible people to behave just as irresponsible and short-sighted as government itself. But our current economy is build on debt and is definitely neither healthy nor intuitive ... nor sustainable ... see [https://www.youtube.com/watch?v=4AC6RSau7r8 Money as Debt] -- [[User:Hkmaly|Hkmaly]] ([[User talk:Hkmaly|talk]]) 22:26, 23 March 2018 (UTC)

:I completely agree about inflation being used to force responsible people to be irresponsible, and I think the description should be changed.  But I've concluded that the Money As Debt film misdiagnoses our problems.  There's nothing inherently wrong with debt – it just allows someone temporarily to use an IOU to buy goods or services before selling, while still committing them to selling goods or services later.  Since sellers don't generally accept individuals' IOUs in payment, a prospective buyer who doesn't have any money yet goes to a bank, and offers their personal IOU in exchange for new IOUs from the  bank.  The bank's IOU is generally accepted by sellers, on the assumption that the bank is solvent.  So money is a debt ''from'' a bank ''to'' the holder of the money, not the other way round.  When the borrower has sold something later, the two debts between bank and borrower (one in each direction) can be written off.  The ''real'' problem comes from people or corporations (whether commercial, charitable or government) writing IOUs which they can't or won't pay.  For example, if banks make loads of loans to people with no income or assets, they rapidly become insolvent, meaning that their IOUs become worth less, perhaps much less. -- [[User:Striped-pad|Striped-pad]] ([[User talk:Striped-pad|talk]]) 22:30, 24 March 2018 (UTC)

:I completely agree about inflation being used to force responsible people to be irresponsible, and I think the description should be changed.  But I've concluded that the Money As Debt film misdiagnoses our problems.  There's nothing inherently wrong with debt – it just allows someone temporarily to use an IOU to buy goods or services before selling, while still committing them to selling goods or services later.  Since sellers don't generally accept individuals' IOUs in payment, a prospective buyer who doesn't have any money yet goes to a bank, and offers their personal IOU in exchange for new IOUs from the  bank.  The bank's IOU is generally accepted by sellers, on the assumption that the bank is solvent.  So money is a debt ''from'' a bank ''to'' the holder of the money, not the other way round.  When the borrower has sold something later, the two debts between bank and borrower (one in each direction) can be written off.  The ''real'' problem comes from people or corporations (whether commercial, charitable or government) writing IOUs which they can't or won't pay.  For example, if banks make loads of loans to people with no income or assets, they rapidly become insolvent, meaning that their IOUs become worth less, perhaps much less. -- [[User:Striped-pad|Striped-pad]] ([[User talk:Striped-pad|talk]]) 22:30, 24 March 2018 (UTC)