No! It doesn't! lol
well then wouldn't it be nice if that debt that I owe was suddenly worth less money, and thus easier to pay back.
I think I am looking at this from an individual's pov, that of an individual who lives on debt, not assets.
Here's where you lose me: the house is not worth less money, it's worth more dollars, because those have been devalued. Assuming the debtor continues to make the same salary, but has to pay more for food etc, he would have fewer dollars to pay his mortgage, no?
When the dollar is weak, it buys less. I suppose this might be good for tangible asset holders. But if the general debt-ridden population can buy less, wouldn't the economy shrink?
I admit I know very little about this stuff. I try to get it, but I just don't. More smoke and mirrors I suspect.
Thank you for the explanation, I will give it some thought.
Okay so now you have a strong dollar and the corporation you work for needs to make cuts to fulfill debt obligations.
Oops you just got fired!
Now you're making $0.
Okay so now you have a weak dollar and inflation is going up.
Why haven't you gotten a raise to at least account for the inflation?
Surely the corporation can afford it because they can charge more for the end product.
The economy is a weird game of trying to take on as much debt as possible while spinning it into something more profitable than it was before. Those who do not participate in this game (most people) are the ones subsidizing it.
It's a very complex topic with a lot of variables.
However I wouldn't call it Smoke & Mirrors anymore than I would call building a computer from scratch Smoke & Mirrors. Just because something is extremely complicated and hard to understand doesn't mean it's a deception. There isn't some simple and transparent way that we could organize the economy but choose not to on purpose just to make it more confusing to fleece the lower class... although the tax code might be a good candidate for that.
There is definitely some deception. Just the name "Federal Reserve" is a deception. That debt allows more money to be "printed" is a deception. It might be complex to the makers of this system, but it is smoke and mirrors to those of us at the bottom of the financial heap.
I really appreciate your explanations. Thank you.
Sure but have you considered that even if we eliminate the FED we are still in a position where retail banks are printing money out of thin air that they don't have? Fractional-reserve banking isn't going anywhere. It's embedded into everything. It can't really be removed until it implodes in on itself. And nobody wants that to happen because the pain it would cause in the short term would be too big a burden to bear on purpose.
I hope we can get a good transition with crypto but I bet it's going to be ugly as hell.
I'm not convinced the implosion can be controlled. Somedays it looks to me as if the implosion will have been deliberate.
Ugliest for those of us who have none, for sure. And where I now live in a hillbilly town, that's everyone but me. I haven't been able to convince one single person to even so much as open an account at an exchange with the ten dollar giveaway. Diversification, people, does not mean investing everything you have in fiat only.
Yeah there is a completely untapped market there.
Someone needs to create a coin based on guns and fishing and lawnmowers and shit :D
There are a lot of people who aren't going to bite until crypto is brought into their physical reality.
Need better bait.