Money is debt; so what happens when my rebate check goes towards credit cards?? :)

[dannno]

what happens when 10% of the money gets flooded into the black market for drugs.

The CIA and other international intelligence agencies will be able to increase the budgets for their clandestine operations. Unless you buy homegrown.

 

[Ibgamer]

I will be buying a new TV with my check!

Just helping to stir the economy

 

[Melissa]

What gets me is, and I hope I dont get flamed for this...

A lot of people I know that qualify for the rebate, are also on Welfare. They're already getting a free ride from the government, why give them more handouts? Just wondering. Unless theres some special rule excluding them that I havent heard about.

actually I dont think this is who they mean --they mean people like me I work full time job not shit for money but I get all my taxes back at the end of the year --so they think if they give the working poor this money they will spend it to buy a new tv. So this is not for "welfare" people but people who work but get it all back so hence we dont really pay taxes--


But on a side note they do get to keep my taxes all year intrest free- so not all good on any end

 

[LaPaulite]

"If" I do get a check. Im not spending it on anything. I'll only be getting the little $300 check. But i've paid into SS for 7 years now that i'll never see. What a ripoff.

 

[Jhe]

That is simple, your individual debt now becomes the debt of your children, and their children, and their children after that, ad infinitum

Any rebate $ I get is going directly into krugerrands!

 

[enjerth]

only one way to use it CORRECTLY!

DONATE it to FREEDOM!

I already donated to freedom, about all that freedom will take of me.

My check will be going to pay off that donation I made on my mastercard.

 

[Ozwest]

Hate to say it, but you rambunctous youngsters, are about to go out for the count.

Thank God us oldies had the time to prepare.

 

[Rob]

When my wife and I get a $1,200 rebate check from this so-called stimulus package, we're going to apply it to our credit cards... Wouldn't this actually cause less money to be in existance or was the money already conjured out of thin air because the government borrowed it? Are we essentially transferring consumer debt into government debt?


May I just say I fucking hate this administration...

Sorry, but you actually just give a bank more money which it will then promptly use to create more money. If you are not familiar with how this works then you should read the "Effects on Money Supply" section

http://en.wikipedia.org/wiki/Reserve_ratio

Every time you make a deposit in banks, the banks use you money to create even more money out of thin air. With the current US reserve ratio, when you pay off $1,200 of you credit card debts. The bank will use that money to create $12,000 new dollars. The only way you can stop this is by holding on to all of your cash and never depositing in banks. However, you then become the sacrificial lamb, reducing your own wealth thanks to inflation, while minimizing the inflation that everyone else will suffer.

Sorry to hit you with the bad news.

 

[JMO]

I will probably use it towards vacation, or if I have any bills I will pay them off.

 

[LeonardK]

Sorry, but you actually just give a bank more money which it will then promptly use to create more money. If you are not familiar with how this works then you should read the "Effects on Money Supply" section

http://en.wikipedia.org/wiki/Reserve_ratio

Every time you make a deposit in banks, the banks use you money to create even more money out of thin air. With the current US reserve ratio, when you pay off $1,200 of you credit card debts. The bank will use that money to create $12,000 new dollars. The only way you can stop this is by holding on to all of your cash and never depositing in banks. However, you then become the sacrificial lamb, reducing your own wealth thanks to inflation, while minimizing the inflation that everyone else will suffer.

Sorry to hit you with the bad news.

No, the OP said he's repaying debt owed on his credit cards, which does indeed destroy money. He's not making a deposit.

 

[Ozwest]

what happens when 10% of the money gets flooded into the black market for drugs.

Buy tobacco, liquor, and drugs.

Do not laugh.

 

[Nanerbeet]

Sorry, but you actually just give a bank more money which it will then promptly use to create more money. If you are not familiar with how this works then you should read the "Effects on Money Supply" section
Sorry to hit you with the bad news.

Yes but if everyone paid off "all" of their debts, the debt-backed money supply would completely dry up. Without any debt, there is no money.


So my small contribution to paying off the debt will reduce the value of whatever bond the bank sold to investors as a CDO, am I not right? And if this happens on a large scale, say everyone in America uses about half of the money to pay off consumer debt, wouldn't that actually have a measureable impact on the investment markets???

 

[Ozwest]

Yes but if everyone paid off "all" of their debts, the debt-backed money supply would completely dry up. Without any debt, there is no money.


So my small contribution to paying off the debt will reduce the value of whatever bond the bank sold to investors as a CDO, am I not right? And if this happens on a large scale, say everyone in America uses about half of the money to pay off consumer debt, wouldn't that actually have a measureable impact on the investment markets???

Hope you got a "fancy girl."

 

[Ozwest]

Study the "depression," some people did very well.

We're headed for a Depression. Sure as shit.

 

[Rob]

Yes but if everyone paid off "all" of their debts, the debt-backed money supply would completely dry up. Without any debt, there is no money.


So my small contribution to paying off the debt will reduce the value of whatever bond the bank sold to investors as a CDO, am I not right? And if this happens on a large scale, say everyone in America uses about half of the money to pay off consumer debt, wouldn't that actually have a measureable impact on the investment markets???

Yes, if everyone were to pay back all their debts it would have an effect, but the reality of the situation is that wouldn't be good for us either. We need some debts, i.e. loans to finance to investment like corporations purchasing industrial equipment, but that should be balanced by consumers having an equal amount of savings. Of course right now both consumers an companies are both debtors on average, so if you personally move yourself closer to a net saver, you can be sure some idiot consumer out there will use available funds you indirectly provided him to live beyond his or her means.

There are some problems only the government can fix, and the monetary problems fit into that category. The system needs reforming.

 

[Ozwest]

Financial advice coming from "self serving" analysts will fuck you.

Don't be the last one to realize this.

 

[Cowlesy]

I used my credit cards in college to buy lots of crap I didn't need and even worse, spent money on disposable good instead of appreciating or cash-flow producing assets (the main use for debt IMO). I paid them off after college as I viewed that debt as a loan made to me by the creditor, and as a principle I always pay off my debts to try and remain a net-creditor.

 

[Rob]

I used my credit cards in college to buy lots of crap I didn't need and even worse, spent money on disposable good instead of appreciating or cash-flow producing assets (the main use for debt IMO). I paid them off after college as I viewed that debt as a loan made to me by the creditor, and as a principle I always pay off my debts to try and remain a net-creditor.

If only more people were like you, we wouldn't have to worry about needing foreign countries to finance our spending habits.

 

[thomaspaine23]

I'll be buying gold or silver. Nothing like using fiat against itself.....

 

[Ozwest]

I used my credit cards in college to buy lots of crap I didn't need and even worse, spent money on disposable good instead of appreciating or cash-flow producing assets (the main use for debt IMO). I paid them off after college as I viewed that debt as a loan made to me by the creditor, and as a principle I always pay off my debts to try and remain a net-creditor.

Net credit up baby!

It's been too obvious, for too long.