mortgages, car loans when the dollar collapses
Submitted by Stinkhammer on Sat, 06/20/2009 - 12:40
What happens when no one can pay these any longer?
Are we all moved from our repossesed homes and our items taken from us?
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When/if the dollar
When/if the dollar collapses, especially in a very significant way, people would be able to sell the most trivial items for a great deal of money.
Consider the Weimar Republic era of Germany, you could buy a bottle of wine one day and the very next day you would get more paper currency for the bottle than what you spent on the bottle with wine in it. There were farmers during that time period who paid off the entire debt of their farms by selling a single egg. Consider the situation in Zimbabwe where a pack of gum is 50 million or so Zimbabwe dollars, probably even more than that by now.
So, if the dollar collapses in a big way - that means that it will be easier to pay off debt. If you owe $5k on your car and in 3 months you can sell a bicycle for $5k... well, then you just sell your bike and pay off the car. Robert Kiyosaki (the Rich Dad Poor Dad book guy; I've yet to read that book, btw) is majorly invested into silver and has stated that he will not be selling his silver until you can purchase an average home with 400 or 500 ounces of the metal (I forget which he said, it was either 400 or 500 ounces). So, essentially, Robert Kiyosaki believes that a $7500 investment in silver today will be worth $200,000 or so FDNs in the not too distant future. Note, it's not that the silver is "worth" more but that the federal reserve notes are worth less so it takes more of them to purchase the same.
A big collapse would result in real assets being worth a larger number of dollars. And since your loans are not inflation protected, everyone should be able to sell some stuff and get out of debt quite easily. It sure will stink, though, when bread is $30 and milk is $50.... but it was only maybe 5 decades ago when the same was 30 cents and 50 cents with today the costs being about 3 bucks and 5 bucks.
Inflation, in my opinion, is all part of the plan. Keynesian economics doesn't really work without it.
Those hurt the worst by all of this will be the nations that lent the U.S. government or the U.S. private sector any significant amounts of money.
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Well, that's whats happened to the small family farmers
throughout the world. NWO wants populations marginalized and herded into cities, to be on hold until needed at the mono crop industrial poisoned farms or the ditch digging for NAFTA.
Beware of Agenda 21.
And never forget, “Humans, despite our artistic pretensions, our sophistication and many accomplishments, owe the fact of our existence to a six-inch layer of topsoil and the fact that it rains.”
And never forget, “Humans, despite our artistic pretensions, our sophistication and many accomplishments, owe the fact of our existence to a six-inch layer of topsoil and the fact that it rains.”
I don't know but
it seems to me that if you have a fixed rate mortgage with a fixed payment that you're going to be able to pay it the same as always. Meaning with the same face amount of FRNs. For everything else, it seems to me the FRNs will be basically worthless.