The Borrower Is The Slave To The Lender: Applications for future generations.

[FaninAma]

I'm not a very religious person but I do believe this Bilical quote holds a lot of validity. What is sad is that younger individuals under the age of 20 had very little to do with accumulating the debt they now (or soon will) own.

I guess being a slave to the banking class is the future for you younger types.

[Midtowner]

I can tell you with my law school student loans, I sure do feel like OSLA's wage slave.

Not really though, it's an investment which has so far paid off well.

Also, for personal debt, the bankruptcy code sort of mothballed that proverb. As for the federal debt, who knows what will happen? Maybe the U.S. we'll inflate our way out of it? Maybe we'll just repudiate it? We'll see.

[FaninAma]

I can tell you with my law school student loans, I sure do feel like OSLA's wage slave.

Not really though, it's an investment which has so far paid off well.

Also, for personal debt, the bankruptcy code sort of mothballed that proverb. As for the federal debt, who knows what will happen? Maybe the U.S. we'll inflate our way out of it? Maybe we'll just repudiate it? We'll see.

If they repudiate it I hope they give us some warning because I will make sure I have exchanged all of the soon to be worthless dollars for something that has actual value.

And my original post was addressing the share of the national debt and other unfunded federal liabilities that each of our kids automatically shares the moment they are born.

[Midtowner]

If they repudiate it I hope they give us some warning because I will make sure I have exchanged all of the son to be worthless dollars for something that has actual value.

There might and probably would be a great deal of inflation as the dollar would sink against other world currencies. That said, such a thing might make U.S. manufacturing a lot more attractive. Would the dollar be worthless? Nah. Money is worth as much as folks think it's worth. There would still be money and we would not sink into some sort of Mad Max/Solar Babies sort of existence. The government would no longer be able to get cheap money and we'd have to actually balance the budget every single year and would probably have to eliminate a good chunk of our entitlement and defense spending, but we can afford that.

It's a viable option considering the almost incomprehensible cost of simply servicing the interest on our already outstanding loans. It'd cripple our banking sector, but they'd recover. Lots of folks would see their balance sheets devastated, but they'd recover. We'd also no longer be the world's reserve currency, but I think that day is approaching anyhow.


And my original post was addressing the share of the national debt and other unfunded federal liabilities that each of our kids automatically shares the moment they are born.

[FaninAma]

The USD might not sink v. the value of other currencies but it would sink v. the value of hard assets. Also, the currency of countries who have a commodity based economy like Canada and Australia would probably fare somewhat better against the US dollar.