hi guys, long time follower of gold and silver but first time poster. I'm here from Melbourne Australia and have started purchasing physical gold & silver in the last 3 months. I have a question related to what governments plan on doing once a reset is put in play if and when economy's across the world crumble in domino effect. i remember hearing of a reset where reserve and/or central banks or governments would drop 3 zeros from total debt (not sure if this would happen as a last resort before a huge reset or after) however this interests me alot. The theory is that currently the top 10 debt countries have an accumulated amount of 70 trillion dollars in debt which makes up around 300% of world GDP and a total of 700 trillion debt in derivatives. from what I remember hearing about a potential debt reset was that three (3) zeros would be dropped to reset the debt amount to a more "manageable" 70 billion dollars debt or to 700 billion in derivative debt. eg current debt 70,000,000,000.00 to more managable 70,000,000.00. my question is if any one has heard of this, if there are any articles you could post or link me to and i'd like to hear your thoughts also. the reason this interests me highly is because if this were to happen, I'm assuming (from what I remember been told - can't remember the online source) that its related to all accounts. if a reset such as this took place then it would affect all money in circulation since all money IS debt. If you had $4,000.00 in bank savings then the reset (dropping the 3 zeros) would leave you with $4.00 of money in your digital bank accounts (haven't really heard much how this would affect paper fiat currency but in digital terms i can see this logically). the exciting part now would be if you own physical gold or silver then the dropping of 3 zeros would increase the value of the PM as you can't simply drop 3 zeros of value from precious metals. please. if anyone has heard or came across this information could you please link me or further elaborate. thanks
so then, if you have a $100,000.00 mortgage it will then be reduced to $100, right ? what would be the point of this ?
I can't imagine that a debt jubilee would be for the Pleb's, and if it were it wouldn't be on favourable terms. Just thinking out loud and basing it on what I've seen happen it'd be doled out on a sliding scale. People with a credit card debt would still wear it, mortgage holders no doubt will get a tidy reduction and governments would still owe eye watering amounts but the amount would be manageable (only to grow again). If the debt jubilee were to come about I'm thinking that if it were enacted on mortgages maybe they'd rework the mortgage so that it was affordable on traditional lending criteria? Maybe restructure the loan to say where the repayments didn't exceed 1/3 of the primary income earners take home pay and would be paid off in 15 years? Mortgages on investment properties would just be called in and the property would be sold to someone else. The small fry in the world aren't exactly going to get away scot free.
All removing the 3 zeros would do is make the debt look smaller while its the same amount of money in truth (in my mind anyway). Isnt that basically deflation? if everything is divided by 1000 that would just mean that the same value exists it just looks smaller. Like if government debt and everyones bank accounts were divided by 1000 then wouldnt that mean we'd be getting paid less aswell? For example if your on 50,000 a year then now you'd only be on 50 dollars a year. But yeah sorry if this isnt what you were talking about but thats just my take on it.
