Post
Topic
Board Economics
Re: Is there room for a State Run Cryptocurrency?
by
tee-rex
on 06/08/2014, 15:07:09 UTC
The debt is on me (bank), and if I'm not able to return the debt (deposit), it will be passed to a guarantor on the debt (FDIC). If this guarantor is a state and can't pay the debt, it can either default or print more money (Fed), thus indirectly (I hope I won't have to repeat this again) passing the debt on to the taxpayers (US citizens). I see no logic at all in what you say or ask. You could just as well bumble something incoherent with a clever face.

In this scenario you still are the debtor.  What you don't seem to grasp is that the money is loaned not given for free

There's no FED printing money either for FDIC.  That's something you made up

It is not relevant to the point discussed whether I would remain a debtor or not. What's important here is who will pay the debts and with what means. Regarding the FED not printing money directly for the FDIC, it is not relevant here either. If it ever comes to choosing between default and printing more money, the FDIC will get all the money they would need, whether through the Treasury or directly from the FED, but this wouldn't change anything. You're just trying to cling to insignificant details and obfuscate the issue (that debts will be socialized).

What do you mean its not relevant?  Thats the entire topic we are discussing.  "Default" means can't pay the loan.  Has FDIC borrowed any money?  NO.  The correct term you want is "insolvent"

Insolvency means the inability of a debtor to pay their debt. And now find the difference with your "default means can't pay the loan". And stop making value judgments, they speak more about you than me.