[PLUG-TALK] What is money? (was Fair Use, etc.)
J.A. Henshaw
jeff at jhenshaw.com
Fri Mar 29 20:58:45 UTC 2002
Russell Senior wrote:
>>>>>>"J" == J A Henshaw <jhenshaw at dsl-only.net> writes:
>>>>>>
>
> J> Well, let's examine that angle.. Many mortgages have a clause
> J> wherein it can be called if the loan goes upside down.
>
> You are, once again, confused.
Nonetheless many loans have that clause. You better hope
that they choose inflation this week while you have a
mortgage rahter than recession, because even though I
addressed the latter scenario, the facts remain, Mr. Senior.
Yes, I read it backwards. My mistake.
When was the first time I was confused?
Because I know the difference between credit and money, and
you apparently do not, I am confused??
It IS artificial when the lending rates and volume of loans
is controlled by 12 banks which are not controlled by the
people or their representatives, Mr. Senior.
You seem to think that the cycles of recession and
depression, inflation and deflation are not connected to the
amount of money and credit in circulation.
A loan goes upside-down when you owe
> more on the mortgage than the property is worth. This is exactly the
> opposite situation. I've promised to pay back a finite, unadjustable
> amount of currency on a set schedule. If the house becomes worth
> _more_ in that currency, then that is _my_ money, not the banks. Even
> adjustable-rate mortgages have caps on the amount that the interest
> can increase (something like 6% in most cases), say from 7% to a
> maximum of %13 percent. If inflation suddenly starts running 100% a
> month, you are in _fat_ city.
>
> J> If runaway inflation artificially raised the sale price of your
> J> home, and they called your note; could you pay it off at the newly
> J> inflated price?
>
> Runaway inflation wouldn't "artificially" raise the sale price of my
> home. There would be nothing "artificial" about it. It would have a
> "new" value in that moment's housing market.
>
>
>
The value is in credits, not in money. The trees and
plaster, roofing and concrete are changing in value due to
artificial pressures on the money ( credit ) supply.
In absence of this artificial pressure, the value would be
stable.
Your children could buy a home at the same price you did,
with money they kept under their mattress.
Am I confusing you? Don't feel too bad, not many people
understand it.
--
Democracy is when two wolves and a sheep vote on what they
will have for lunch.
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