Debt is a Good Thing

If you believe that debt is "enslaving" yourself to the system, you're poorly mistaken. Debt is not a form of slavery, debt is your way to ascend the system.

We live in a fractional reserve debt-based money system. Everytime a loan is made, money is created. This money-creation scheme slowly inflates away the value of the dollar, but here's a detail. The Cantillion effect states the beneficiary of new money created is the first spender while every person after who spends that money is advantaged less and less until it reaches somebody who doesn't benefit at all. Anyone who spends that money afterwards is disadvantaged because they suffer more from the inflationary effects of the money-creation than the first spender.

It would be like if had a money printer. If i could print money and spend it willy nilly, I'd become very rich, the people who i initially spent my money on would benefit too because they get my newly created money before the market releases it. The average person won't benefit because they'll see inflation before my money gets around to them.

By borrowing money, you take on the role of the money printer. You get to spend that money AHEAD of the market. When you create (aka borrow money), you are indirectly siphoning societies resources away from them and giving it to you. This not only devalues the dollar but devalues your DEBT as well, since your debt is paid in dollars.

Lets look at this from the perspective of the capitalist on a macro level..... (DOWN BELOW)

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>Capitalist class borrows 10 trillion into existence from the banking system
>Buys hotels, businesses, stocks, etc
>10 trillion circulates the economy, causing the value of the dollar to drop by 1% and overal prices to rise by 1%
>That alone props up the value of the hotels, businesses, and stocks by 1% on average
>Diminishes the capitalists debt by 1% on average.
>On top of the (ROI - Interest) the capitalists are getting from the loan, there's also a 2% additional reallocation of resources to them.

Be part of the debtor class, don't be the one having your wealth siphoned.

thx just took out a payday loan

Bro their interest rates are 40%

I'm talking about borrowing UNDER your discount rate.

Debt is great until nobody can afford to pay for anything without taking on absurd levels of debt. This leads to unsustainable bubbles (Student loans, Housing, Auto loans, basically the everything bubble).

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It’s only good if you are the parasites that benefit from our debt based usury system

if everyone is parasiting and you aren't, do you just not like money?

Yeah, it's bad for society, but good for the individual taking the loan because they redistribute resources to themselves.

The current super high prices of houses, cars, and education is the result of previous borrowers doing the cantillion effect.

op basicallny stonks UP UP UP?

And unironically, it is the BORROWER who is the parasite

you're right up to a certain point. Whats an acceptable interest rate in your opinion?

Below the rate that you believe you can earn a return on, subtracted a few percent for the additional risk

If i can confidently earn a 10% return, then I'd argue 8% or under is reasonable.

The borrower owes the lender payments on the loan principle AND interest. Explain to me how newly printed effortless fugazi loan money deserves any premium to receive it from a bank? It seems like the real winrars in debt world are the lenders.

A 2% spread is acceptable to you? Top Kek.

Debt is great when you use suicide as a hedge. Take out a huge sum. All in on calls. Do this until rich or driven to suicide.

>The borrower owes the lender payments on the loan principle AND interest. Explain to me how newly printed effortless fugazi loan money deserves any premium to receive it from a bank? It seems like the real winrars in debt world are the lenders.

Because the lenders still face a risk. When money is created by a bank and loaned into existence, they still owe the depositor their money. The money is just in two places at once, the borrowers hands and in the bank account of the depositor. Banks don't keep the interest + prinicpal, when a loan is paid back, the principal money that was created in the process is effectively destroyed.

Banks can still get screwed if the borrower defaults and the depositor demands their money back.

Debt is slavery. DMM mTokens atop DMG is a ticket out.

Assuming 10% is nearly certainly guaranteed, 100%.

Now in real life it's more about management, I'd probably prefer the spread to be over 5 or 6%..

>debt based usury
>usury
Why? loans APR are not that high

That's why corporations exist. Corporations are like magic shields for capitalists.
If a normal person cannot pay his debt, he will become a debt slave. If a rich person cannot pay his debt, his corporation goes bankrupt and he is out of the hot water

Look around you. It is borrower like Elon Musk who are getting rich with their meme companies.

Debt is the only thing backing the US dollar since we left the gold standard. Even gold used to be backed by debt to some extent before banks existed. I don't think our current system of debt backed currencies will collapse in our lifetime but it would be interesting to know how everything plays out in the future.

>Banks don't keep the interest
They do. It counts as income.

>Banks owe the depositors
Easy. Just have no depositors. It can essentially happen as the Fed lowered the reserve requirement to 0% in March. There is no more fractional reserve banking, now its just "banking"

Sorry, I meant banks don't keep the principal.

>Easy. Just have no depositors. It can essentially happen as the Fed lowered the reserve requirement to 0% in March. There is no more fractional reserve banking, now its just "banking"

Fractional reserve banking still requires depositors. It just means they don't have to keep any of the depositors money in T-bills or cash.

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Looking at Musk now. He started spaceX with his own $100mil and got rich thru fed contracts. Sure Tesla got series A funding to start up but Musk personally didn't take out loans for tesla, rather he got rich by owning the debt issued by tesla. Tesla is the borrower, Musk and shareholders are the bank.

I’m levered up to my eyeballs so I can farm shitcoins all day, yeah I think I’ve got this cantillion effect covered

>Their interest rates are 40%
Ya for the good ones

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Maybe you are 90years old then yes, if not then I'm very sure it will collapse in our lifetime. The amount of debts we have in the world is so high that no one can pay it. Really no one. The only thing that lets us continue is the low interest rates banks have and that u can get easily a Credit.

George Gammon once said “inflation benefits the rich, deflation benefits the poor” and he is correct. This is because inflation targets asset prices more than it targets everyday knickknacks and this is why borrowing credit in order to own assets has actually historically been a good move for people. They can benefit from asset prices rising and pay back their loans in devalued dollars.

But with the great reset potentially coming though, I think the elites and bankers may make an unorthodox move that will catch everyone off guard and will cash out some of that inflated wealth soon.

But the ideal situation to be in, is that of the bankers who issue the debt AND own assets. Get paid interest while you watch your QE funded capital appreciate with inflation. Win-Win