4 ms·

"so whatever you are stating here is none of my concern, nor does it have anything whatsoever to do with anything I wrote about, nor does it have anything whats

by jariel 5y ago

"so whatever you are stating here is none of my concern, nor does it have anything whatsoever to do with anything I wrote about, nor does it have anything whatsoever to do with me." Why are you commenting on a thread about X and Y, and then saying 'X and Y are none of my concern and have nothing to do with me?' You original response was in a thread concerning public welfare systems. You commented extensively about financial systems in response to issues concerning mortgage debt and credit. "You are so deep into classical economy thinking," This has nothing to do with 'classical economics' it has to do with a working financial system. What you just did was more effectively explain why Croatia is poor. If banks are corrupt and/or don't offer credit, and if consumers have no interest in it, then of course, a credit system won't exist and it will keep Croatia poor. If, as you say, Croatia won't have anything but a 'cash economy for hundreds of years' then Croatia will be poor for hundreds of years. It's like not having electricity or water.

Annatar 5y ago
The people aren't poor, even though the country is poor on paper, but Croatia isn't really poor, because the people have cash stashed away and the rest of their savings are in real estate ownership. And then there is the matter of Croatia having so many natural resources, that the country isn't actually poor. They are not a poor nation and they do not live in a poor country, it's just that this country functions very differently from how you expect a non-poor country should function. Just because they don't do debt doesn't mean they are poor, or will be poor. People without debt are not only rich but free, because nobody can have them by the balls.
- jariel 5y ago
  You're having a difficult time grasping what debt and credit is. It's not a negative thing, it's a positive thing. Advanced economies run on credit, not cash and it's a matter of allocating services and resources more efficiently based on need, and of course, being able to plan ahead for outcomes. Nations that don't have a functioning financial and credit system will not be wealthy, it's just that simple. Here is a YouTube by Ray Dalio where he explains what credit is, and how it functions in the economy. [1] [1] https://www.youtube.com/watch?v=PHe0bXAIuk0 https://www.youtube.com/watch?v=PHe0bXAIuk0
  - Annatar 5y ago
    Debt is NEVER a positive thing; not even when it's leveraged, not even when it's used to lower one's taxes. All debt is toxic, for as long as one carries debts, one is not free, not to mention that in case of non-liquidity id est inability to service debt, one can easily lose everything. The current economists' debt is good hypothesis will lead to a big reset and a global economic crash. By the way, you incorrectly assume that I am financially illiterate. I have done more than 100,000 trades with complex financial instruments. Debt is extremely toxic and dangerous.
    - jariel 5y ago
      Annatar, you've completely misunderstood the concept of debt and credit, the entire economy runs on it, and unfortunately yes, it's a signal of financial illiteracy on your part. All businesses and nations carry debt, it's a financial instrument like any other, and it's a very useful thing. Like all things, it can be misused. This isn't remotely controversial. Saying 'debt is toxic and dangerous' is like saying 'roads are toxic because they have cars, which can lead to crashes', it's completely bizarre. These financial systems are part what enables rich countries to be rich. Nations that don't have the ability to structure are poor, it's that simple.
      - Annatar 5y ago
        Economies which run on debt are doomed to crash. Other than paying off that debt, there is no way to prevent the oncoming crash. If you understood how money is created out of thin air because banks are only required to put forward a small fraction of actual cash (which is still a made up number, not actual fiat currency and therefore isn't backed up by anything real) before they give out a loan, and that this effectively enables private institutions to create money out thin air, you would never claim that I am financially illiterate. Please, educate yourself on: 1. how the financial system works; 2. how broken and corrupt it is. For several decades I worked in the financial industry, in the very core of it; I was there smack dab in the middle of it, working at a certain institution when that institution caused the 2008 crash (that's why I exited stage left, because I am not a crook and disagreed with it). The current debt-based economy is a time-ticking bomb. When it comes to the great reset, it will be the worst recession which the world has ever known.

by jariel 5y ago

Annatar 5y ago

The people aren't poor, even though the country is poor on paper, but Croatia isn't really poor, because the people have cash stashed away and the rest of their savings are in real estate ownership. And then there is the matter of Croatia having so many natural resources, that the country isn't actually poor. They are not a poor nation and they do not live in a poor country, it's just that this country functions very differently from how you expect a non-poor country should function. Just because they don't do debt doesn't mean they are poor, or will be poor. People without debt are not only rich but free, because nobody can have them by the balls.

jariel 5y ago
You're having a difficult time grasping what debt and credit is. It's not a negative thing, it's a positive thing. Advanced economies run on credit, not cash and it's a matter of allocating services and resources more efficiently based on need, and of course, being able to plan ahead for outcomes. Nations that don't have a functioning financial and credit system will not be wealthy, it's just that simple. Here is a YouTube by Ray Dalio where he explains what credit is, and how it functions in the economy. [1] [1] https://www.youtube.com/watch?v=PHe0bXAIuk0 https://www.youtube.com/watch?v=PHe0bXAIuk0
- Annatar 5y ago
  Debt is NEVER a positive thing; not even when it's leveraged, not even when it's used to lower one's taxes. All debt is toxic, for as long as one carries debts, one is not free, not to mention that in case of non-liquidity id est inability to service debt, one can easily lose everything. The current economists' debt is good hypothesis will lead to a big reset and a global economic crash. By the way, you incorrectly assume that I am financially illiterate. I have done more than 100,000 trades with complex financial instruments. Debt is extremely toxic and dangerous.
  - jariel 5y ago
    Annatar, you've completely misunderstood the concept of debt and credit, the entire economy runs on it, and unfortunately yes, it's a signal of financial illiteracy on your part. All businesses and nations carry debt, it's a financial instrument like any other, and it's a very useful thing. Like all things, it can be misused. This isn't remotely controversial. Saying 'debt is toxic and dangerous' is like saying 'roads are toxic because they have cars, which can lead to crashes', it's completely bizarre. These financial systems are part what enables rich countries to be rich. Nations that don't have the ability to structure are poor, it's that simple.
    - Annatar 5y ago
      Economies which run on debt are doomed to crash. Other than paying off that debt, there is no way to prevent the oncoming crash. If you understood how money is created out of thin air because banks are only required to put forward a small fraction of actual cash (which is still a made up number, not actual fiat currency and therefore isn't backed up by anything real) before they give out a loan, and that this effectively enables private institutions to create money out thin air, you would never claim that I am financially illiterate. Please, educate yourself on: 1. how the financial system works; 2. how broken and corrupt it is. For several decades I worked in the financial industry, in the very core of it; I was there smack dab in the middle of it, working at a certain institution when that institution caused the 2008 crash (that's why I exited stage left, because I am not a crook and disagreed with it). The current debt-based economy is a time-ticking bomb. When it comes to the great reset, it will be the worst recession which the world has ever known.