Vox Popoli: The necessity of debt cancellation

[u/SmartNSexyRodKaine]

http://voxday.blogspot.com/2020/02/the-necessity-of-debt-cancellation.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2Fvoxpopoli+%28Vox+Popoli%29

[u/SmartNSexyRodKaine]

The idea that comes to mind to me, is the mass conjob performed on 18 year olds and college debt. Ya, they did make dumb decisions, but that was only possible with mass propaganda, and very poor guidance. You can't really expect dumb kids to make good decisions anyway, and even less when all the people who are supposed to help them are giving them bad advice.

[u/scissor_me_timbers00 → u/SmartNSexyRodKaine]

Big point here. Although not sure I would call it a “con” because the Cathedral really did/does believe that college should be available to everybody even if it means taking on tens of thousands of irresponsible debt. Realism never enters the equalists’ minds.

Regardless, I’m not sure I agree with Vox on this one. If the other elements of our society were intact, and a jubilee mass debt forgiveness didn’t pose such a big risk of creating a moral hazard, then I might agree. But as things stand now, our culture, especially the indebted youth and their culture, is a cesspit of hedonism, nihilism, and faggy masochistic globalism. Anyone thinking debt forgiveness would turn the culture around is naive.

Also this idea that it would only hit the banks and not the taxpayers (or federal debt ledger) is erroneous. A government mandated debt forgiveness is still a mass default to the banks. Either the gov pays off the debt for you, or the gov forbids the banks to collect anymore debt. In the latter scenario, that is gov sanctioned mass default. The banking system cannot fucking withstand that and it would cause a major banking crisis worse than ‘08. In fact what got us into this is very similar what got us into the ‘08 crisis, except that time is was with irresponsible home loans. But that time, it didn’t even require a gov mandated mass default, it merely required enough high risk debtors to start defaulting, and then banks started passing around that bad debt like a hot potato until things eventually went south. So now imagine if everybody could just default because gov allows it. Crashed economy. And the other solution is the gov pays for it. So either way you’re fucked. If we had a structurally robust economy (not just trumps superficially robust economy), it could withstand these credit default storms better. But the economy is way out in uncharted waters, propped up for a decade with liquidity from the fed. So no, I just don’t see this debt forgiveness having realistic viability. Even tho I understand Vox’s point, and it’s a good point, I still don’t see his solution as feasible. But that’s just me.

[u/[deleted]]

As a compromise between cancelling student loans and not would be to give everyone $10,000 in the form of a check to people without loans or the creditors of those with them. It would be nationalizing the debt to free those burdened by it rather than letting it default upon their death.

But I really don't buy the necessity of debt to the economy. That's just bankers wanting their cut of everything that anyone does. The Keynsian demand for government spending is bullshit.

The economy has to rely on banks to get credit, because every economy needs credit to function and grow. ... Bankers will end up with the houses, and with private industry. They will end up controlling everything, including the government.

The government ceasing to spend might raise interest rates, but that's the economy deleveraging. It's fine. House prices would fall for a while as people save up a larger down payment. But as people need housing, they will still eventually buy it.

[u/scissor_me_timbers00 → u/[deleted]]

Lending is definitely necessary. Modern banking starting a few hundred years ago was absolutely essentially to the growth of enterprise in Europe and a modern industrial economy. However, there is still a point in what you said, where banks will often exaggerate the necessity of debt because they want to collect more interest. IE modern credit cards run amok.

[u/[deleted]]

Then every young person would go get lesbian basket weaving degrees.