[PLUG-TALK] What is money? (was Fair Use, etc.)

[J.A.Henshaw]

Russell Senior wrote:

>>>>>>"J" == J A Henshaw <jeff at jhenshaw.com> writes:
>>>>>>
> J> You are forgetting that the "tokens" as you call them, are credit -
> J> not money.
> 
> J> You will see runaway inflation in your lifetime.
> 
> As someone who owes lots of money on a mortgage, I would *welcome*
> runaway inflation.  With a little well-timed hyperinflation, I could
> pay off the house in a year.  Bring it on, baby!



Well,  let's examine that angle..
Many mortgages have a clause wherein it can be called if the 
loan goes upside down.

If runaway inflation artificially raised the sale price of 
your home, and they called your note;  could you pay it off 
at the newly inflated price?

Or would you end up moving onto the street?

Another aspect of the illusion of increasing value based on 
comparables is that you can only realize your profit if you:
a) sell the house
b) move to a less costly area

so there is no real increase unless you are willing to do 
both;  and the bank wins in either scenario.

Remember,  the bank risked other peoples money on the home.
The bank creates a black entry when you sign a promise to 
pay;  they call your promise to pay a credit on their books.

They then write you a check ( credit ) which is most likely 
not covered by the deposits ( other peoples money ) and 
charge interest adding up to three times the amount of the loan.

Although I agree; it is better to be mortgaged to the hilt 
in this scenario than to have it paid off of partially 
mortgaged.


> 
> J> You also forget that the bankers have hoarded the gold.  
> 
> a) I doubt it (there is probably more gold in landfills on
> edge-connectors in abandoned PC's than in Fort Knox); and b) if so,
> they are welcome to it.  I have _no_ use for gold.  It only has value
> to me in that there are kooks who have an inordinate fascination with
> the stuff, and given a pile of gold I would immediately convert it
> into something I _do_ value.
> 
> 
> 

There are lots of arguments about what is valuable and to 
whom;  it does not change the fact that we are being robbed-

jH



-- 
Democracy is when two wolves and a sheep vote on what they 
will have for lunch.