Is it right to burdon the next gneration with this gerations debt…debate solutionsThis thread came about due to a discussion (many) elsewhere.
Myron commented::
……..yet are naive enough to believe that politicians will keep their promises. You state ” government guarantees repayment of the funds borrowed’ well, how is that working for your? They have only managed to rack up $17. TRILLION in debt that can never be repaid in sound money! The only way they can even begin to meet the total obligations they have amassed is by continuing to do what they have always done, DEBASE the currency. If you are prepared to accept 2c in purchasing power for each dollar you possess, then indeed there is reason to be optimistic.
I replied:
Not meaning to be at all rude, your reply encapsulates your general theme of returning to something like a gold standard. As many writers have said, we are running up a debt for future generations that can never be repaid. Thats ‘never’ if currency stays the same value. However, all babies are born into this world without a penny in their pocket. So whether a $ buys them a home or a stick of gum is irrelevant to them so long as their wages are relative to cost of living. A v simple way to reducing their inherited debt is to devalue it in real terms………… a trillion now buys a stick of gum and they earn a grillion pm in wages. This places the loss/devaluation on what the previous generation has saved. I see no other way to reduce the debt and get those that have caused the problem to pick up the tab.
Have you got a different solution?
Well have you?
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I notice no answers but thought to comment, That fiat money historically always fails Most recent case I think is Zimbabwe. Often failure leads to barter of some sort till people decide what they might trust as fair means of exchange.At one time in my area a handshake was as “good as gold” which it is if men conduct themselves with honor honesty & integrity. Per example socialism might be ideal system in ‘eutopia’ but people with all there opinions & longings do not behave as “worker bees in hive of humanity” for long. Seems freedom of many sorts is universal desire of mankind. Mayflower compact of owning all things in common & share all crops. Nearly led to starvation when single men noticed that married men with several children expected share for each while adding little to hard work of farming & single men thought why should I slave for another & gain nothing for myself. The second year they thought to try “indian” idea of each grow & live on own food or game harvested. Prospered & were able to feast at next harvest. People are the problem & paradoxically can be the solution.
BTW if Columbus thought he had landed in China instead of India would Europeans have called resident natives Chinas?
Perhaps we should have “Plutonium standard” . No one would want to carry in pocket so could use other medium as currency. Governments would not like to stockpile much in same place lest it go critical & transform itself with undesired side effects. It really is quite valuable as energy source if properly managed in small quantities & can be re-refined many times by removal of undesirable daughter products. Only problem is people & there penchant for turning what should be good to evil.