Really Stupid Question Time - If Banks Simply Cancelled All Their Debt...

'Ophelia' wrote this:


If you have your stash in cash and they go into the euro, you would be able to change your stash for euros. However, if you were to pull out large sums of money to keep at home, retain a withdrawal document from the bank issued at the time.
That should avoid you being accused of being a drug dealer when you changed the cash for euros or wanted to deposit it in the bank again.
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aracari wrote:

That is a good idea!
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Ophelia wrote:

Under the mattress?
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Jonathan Bryce wrote:

Pah :) I was really meaning, in which institution would he errr stick it!
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In fact the banks are talking about doing precisely that.
More interestingly, during Japan's debt-deflation there have been points where even the large bondholders paid the banks to warehouse their cash.
FoFP
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wrote:

What - taking care of our money...? That would be a first... !!!!!
On the other hand, if the banks' Directors were asked to provide a personal guarantee, as most borrowers have to, then that might persuade people to deposit their money, and pay a modest fee :-))
--
Martin



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'Martin' wrote this:

Lol. I see banks are still marketing themselves as a nice cosy safe place to deposit your savings in. ho ho.
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wrote:

I assume Advertising Standards Authority haven't spotted that... !!
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Martin




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Maria wrote:

Yes, who ever was owed the money effectively donated the money to them when they handed out the original loan.

Economics is a social science.
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On Fri, 03 Apr 2009 04:43:50 +0100, Maria

'they' could indeed do that....but that would (heavily) undermine trust in money (or at least government money....
however, what you are suggesting is *exactly* what government like the clown's are now doing via inflation...they're just doing it more slowly.... when it gets fast enough you have mugabe....
ps, it's not a stupid question at all...it is precisely the question you should be asking if you wish to understand socialism... they always destroy production and money....
here is the great keynes.... "Lenin was right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." 1919
regards
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Not really. You see some people spent some of that notional money.
If someone had bought your house with borrowed money that didn't "really" exist, would you be happy to hand back the cash so that the debt could be cancelled?

Not really. Many of those businesses are owed some of that money. They'd be bankrupt if it were declared null and void. Look what's happened to the banks once debts have been cancelled by din't of them being declared uncollectable.
FoFP
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