| > Does this mean I should go to the bank right now and take out 1 million in loans to buy crypto then wait for my debt to disappear? Why would the bank approve such loan? If you have a business idea that requires money, then you certainly should do so. The bank would approve such a loan because it might work. Of course, you'll have to convince them. In practice, they'll take proxies for conviction: you'll have to prove you believe (and that you will follow through) by putting up your own money next to theirs. > Some people couldn't even afford to get a loan. Well the deeper reason is that "the rich" are the ones responsible for most of those assets being worth something in the first place. So they get something back from the people they provide it for. They don't immediately need something, so they're ok to take the promise of something back in the future. Add some basic economics and you have debt. So I wouldn't worry about assets being worth much or not: they won't be, as organizations making these assets will voluntarily stop, and the value of those assets will drop like a stone. In crude terms: why would Apple maintain an app store for society if there's a debt jubilee ? They won't. Because they won't get paid for it, and motivation will have to come from elsewhere. And a gun, the historical answer, only goes so far. The big problem is that we are getting more and more into is the situation that a significant portion of society is worthless to society. Solve that, and debt problem will go away. Don't solve it and no economic system, no matter how simple or complex, is going to save you (assuming it keeps growing it has to break). Debt is fundamentally a way to make private enterprise pay for nonproductive people in a growing economy. Great. Take that away, and someone else will have to work (not pay, obviously) for them. Current tax rates implies that we're close to the situation that everyone with a job will have to provide for between 3 and 4 others (US closer to 3, EU closer to 4, Asia, surprisingly, even higher), without receiving anything in return. That's what debt, indirectly, does. Fancy switching back to the direct approach? |