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House Price Crash Forum

Our Problem Is Debt


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HOLA441
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HOLA442

Hmmmm,

I guess this is over my head.

Bill

Goodbye to National Debt

Hello to blowing it all again and the moral hazard.

Goodbye to learning to live within our means.

Nope, not a solution to anything.

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HOLA443
You don't seem to understand that market prices are found, they are a product of peoples interaction.

It isn't abstract at all.

The price is real, the vehicle of the market is the abstract process through which price is determined.

That just takes the form of a freely agreed exchange.

Debt enslaves people by denying them a level playing field in that market, their debt hamstrings them.

In principle it is no different to the old company store.

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HOLA444
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HOLA445
The price is real, the vehicle of the market is the abstract process through which price is determined.

That just takes the form of a freely agreed exchange.

But it's not binding on me. The price others are willing to pay for gold might be £12 million an ounce. I can still sell mine for magic beans if I prefer magic beans.

Debt enslaves people by denying them a level playing field in that market, their debt hamstrings them.

In principle it is no different to the old company store.

Oh I agree with this, 100%

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HOLA446
But it's not binding on me. The price others are willing to pay for gold might be £12 million an ounce. I can still sell mine for magic beans if I prefer magic beans.

It is binding on you, if you contact to swap your gold for beans the contract can be enforced.

If you go to the market and ask for something else in exchange, and nobody wants to deal you go home without what you want.

Clive Sinclair took his product to market and the market didn't want to know. His wishes counted for nothing.

Maggie and Marx were in agreement on that one, you can't buck the market.

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HOLA447
It is binding on you, if you contact to swap your gold for beans the contract can be enforced.

Contracts don't have anything much to do with the marketplace. They are more used in the run up to it.

If you go to the market and ask for something else in exchange, and nobody wants to deal you go home without what you want.

Right - as it should be.

Clive Sinclair took his product to market and the market didn't want to know. His wishes counted for nothing.

Ok. That's valuabel feedback he got right there. Saved him wasting his time.

Maggie and Marx were in agreement on that one, you can't buck the market.

Maggie bucked the market - she ran the government.

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HOLA448

If money isn't backed by debt then its becomes a worthless piece of paper.

That's what Bill and others that think like him just don't understand. The reason I run around all day at work is to collect IOU's that people have offered so at some point in the future I get to redeem them when I'm in need of goods and services. Without this underlying mechanism the incentive to go out and work to earn paper money would become worthless; the commercial banks facilitate this process by allowing the money/debt creation process to take place. In the long term gov'ts wouldn't be able to fulfill this role because they lack the profit motive that's the driving force behind most of the useful economic activity that takes place.

The money system works fine, its just that the housing market keeps stuffing things up.

Edited by chefdave
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HOLA449
If money isn't backed by debt then its becomes a worthless piece of paper.

That's what Bill and others that think like him just don't understand. The reason I run around all day at work is to collect IOU's that people have offered so at some point in the future I get to redeem them when I'm in need of goods and services. Without this underlying mechanism the incentive to go out and work to earn paper money would become worthless and the commercial banks facilitate this process by allowing the money/debt creation process to take place. In the long term gov'ts wouldn't be able to fulfill this role because they lack the profit motive that's the driving force behind most of the useful economic activity that takes place.

The money system works fine, its just that the housing market keeps stuffing things up.

Nah it's evil.

http://injinsalternativeuniverse.blogspot....tem-basics.html

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HOLA4410
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HOLA4411
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HOLA4412
Maggie bucked the market - she ran the government.

Worse than that, she did away with the firewalls put in place after the 30's fiasco.

That was my point about Big Bang. It's been government policy for 30 years and has truly bucked things up.

Big Bang was the starting gun for this Tsunami of debt engulfing everyone.

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HOLA4413
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HOLA4414
Worse than that, she did away with the firewalls put in place after the 30's fiasco.

That was my point about Big Bang. It's been government policy for 30 years and has truly bucked things up.

Big Bang was the starting gun for this Tsunami of debt engulfing everyone.

I think you are philosophically confused (who isn't?)

A market is a venue where you can get refused.

A government is an entity that doesn't take no for an answer.

They really don't coexist very well. One of them is moral, the other is evil. Can you guess which is which?

Edited by Injin
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HOLA4415
If money isn't backed by debt then its becomes a worthless piece of paper.

The money system works fine, its just that the housing market keeps stuffing things up.

With what has happened to the value of money I can't see the validity of your statement.

As to the housing market "stuffing things up", it didn't. That was just the weak point in the dam that cracked first.

The world flooded with debased money was the cause.

Edited by DiggerUK
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HOLA4416
With what has happened to the value of money I can't see the validity of your statement.

As to the housing market "stuffing things up", it didn't. That was just the weak point in the dam that cracked first.

The world flooded with debased money was the cause.

deleted

Edited by Bloo Loo
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HOLA4417
With what has happened to the value of money I can't see the validity of your statement.

As to the housing market "stuffing things up", it wasn't. That was just the weak point in the dam that cracked first.

The world flooded with debased money was the cause.

No, the real estate market was fundamentally causal

The banks made money available the way they did because real estate became an apparently one way bet..real estate became a one way bet because the act of holding it was collecting the rising surpluses created by people's work.

Edited by Stars
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HOLA4418
With what has happened to the value of money I can't see the validity of your statement.

As to the housing market "stuffing things up", it didn't. That was just the weak point in the dam that cracked first.

The world flooded with debased money was the cause.

The way the housing market operates devalues the productive economy because it offers a route for making easy money without expanding any effort. The two cannot co-exist indefinately because one (the housing market) is innately parasitic and drains the life from those that have to go out and work for a living.

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HOLA4419
The way the housing market operates devalues the productive economy because it offers a route for making easy money without expanding any effort. The two cannot co-exist indefinately because one (the housing market) is innately parasitic and drains the life from those that have to go out and work for a living.

You could substitute just about anything for housing and your post would stand.

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HOLA4420
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HOLA4421
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HOLA4422
You could substitute just about anything for housing and your post would stand.

No he couldn't

The housing market presently contains a parasitic mechanism - a mechanism which can be used to collect production without directly or indirectly contributing to it.

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HOLA4423
You could substitute just about anything for housing and your post would stand.

Not really. If people started claiming the air or sunshine as their private property then you'd have something remotely comparable, its a bit difficult to stop others from enjoying these natural creations though.

Most people have to add value to pay their way through life, others just use the housing market..

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HOLA4424
The problem with the U.S. economy is the same as the worldwide economy - debt - specifically the interest on the debt incurred when governments borrow their money from banks.

nah. you wouldn't give a flying f*** about the US gov't debt if it weren't for the fact that you are forced to pay for it.

force is the problem; not debt.

The bankers try to get us to focus our energies on irrelevancies.

so do you.

Edited by InternationalRockSuperstar
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HOLA4425
Not really. If people started claiming the air or sunshine as their private property then you'd have something remotely comparable, its a bit difficult to stop others from enjoying these natural creations though.

Most people have to add value to pay their way through life, others just use the housing market..

Leading on from what you say, we are having to pay taxes for something we produce every day.

They may not have found a way to privatise sunshine and air, but they do tax us for the CO2 that we breathe out.

Green taxes are the latest wheeze, and it matters not one jot if you support *AGW or rubbish the idea.

They will be charging taxes for every day we live next, errrr, come to think of it.

*Anthropogenic Global Warming

Edited by DiggerUK
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