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ECON Opinion: How $1 trillion of debt will drag down an entire generation
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  1. #1
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    Opinion: How $1 trillion of debt will drag down an entire generation

    A trillion dollars in debt. Just among regular people. I'd imagine how bad this could get, but Marketwatch did that for me.

    Fair use cited, so on and so forth.

    https://www.marketwatch.com/story/ho...ion-2019-03-13

    Opinion: How $1 trillion of debt will drag down an entire generation

    Millennials will pay so much for student loans that consumption and investing will be crowded out

    This was a headline in Bloomberg the other day: “Millennials are facing $1 trillion in debt.”

    A trillion always sounds like a lot. It is a lot. But while the absolute number is large, that is not the issue. The issue is what makes up this millennial debt. It’s mostly student loans, and a staggeringly high amount of these loans are in delinquency. And this is at the top of an economic expansion!

    On a societal level, imagine what happens if the economy takes a wrong turn and these student loans — which are already 10% delinquent — go to 40% delinquent?

    Revolution.

    Not to get all “Book of Revelation” on you, but debt has historically led to war and inflation and autocracy.

    Once you know that, you develop a healthy respect for debt and the destruction it can cause.

    Wall Street folks often view debt as a numerical abstraction. Like, if the default rate rises to 6%, then high-yield spreads over Treasuries will go from 300 to 700 over. That’s the kind of gearhead stuff most analysts talk about.

    I recognize the investment opportunities, but I’m also conscious of the impact on human beings when people apply too much leverage. Debt kills.
    Millennials and debt

    If you are in debt, in most cases it’s your fault. But in the case of millennials, they made decisions to take out student loans when they were too young to make these decisions.

    Someone in the Bursar’s Office stuck a form in front of them and said “sign here.” And without a second thought, these 18-year-olds signed their future right down the drain.

    Borrowing money to go to school is shockingly easy. Borrowing money to buy a house is very hard. That probably explains the difference in the delinquency rate.
    Bloomberg

    So when millennials say that it isn’t their fault and the debt should be forgiven, they’re half right.

    They’re guilty of having a high agreeableness score and shocking levels of innumeracy. Even so, they’re not deadbeats any more than any other generation are deadbeats. And they’re not any more prone to extravagance.

    In fact, student-loan debt has crowded out other kinds of debt, notably, mortgage debt. They can’t get a mortgage, which means they can’t build equity, which means they can’t take part in the greatest savings program known to mankind.

    Nobody does this deliberately. If I were to take out six figures in student debt, I would build a spreadsheet to figure out how long it would take me to pay it back. Some 99.9% of these people do not do this. Are they wrong? Or do we just need to lower expectations?
    Lending standards

    This talk about forgiving student-loan debt is dumb. Because, remember, you have to respect the rights and property of the lender. If I were running this hamburger stand, I would work to compel student lenders to enforce the same credit standards that banks do when they issue mortgages.

    Naturally, that would result in fewer people going to college — or, at least, to expensive colleges. And that is OK! It would force colleges and universities to think a little harder on the sprawling bureaucracies they’ve built for themselves, along with the five-star accommodations.

    The University of Michigan famously employs 93 full-time diversity staff, the top 26 of which make six figures. So, yes, college could be cheaper.

    The way out

    I have been focusing on debt from a micro perspective. My colleague John Mauldin talks a lot about debt from a macro perspective. The national debt is huge and growing and is a problem. Unless we take corrective action, we will also be in checkmate.

    Having said that, there may not be tangible economic effects for a while. Deficits do matter, but with a very long lag. If a household goes into debt, the effects are immediate.

    Even if a recession doesn’t happen, the absolute best-case scenario is that people limp along with crushing debt service, crowding out consumption and investment. People live in poverty, retire in poverty, and die in poverty.

    This is a personal mission of mine. I talk to people and I hear stories about how debt constrains behavior. It sucks up all the free cash flow. I bet if people had an extra $1,000 a month in free cash flow, they’d at least find something fun to do with it.

    I paid off what was left of my debt two months ago. Tomorrow is the first of the month — no mortgage payment! Sublime.

    I hope one day everyone gets to experience the same feeling of liberation.

    Jared Dillian is a former Lehman Brothers head of ETF trading. In a special report, he writes about how to properly position your portfolio for what he says is an upcoming stock market crash.

  2. #2
    But it is perfectly OK for the US to be $22Trillion in debt
    Consider the ravens, for they neither sow nor reap, which have neither storehouse nor barn; and God feeds them. Of how much more value are you than a pesky raven?
    It is difficult to stand idly by and watch the vacuum of ignorance being filled with lies

  3. #3
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    Hadn't you heard? Debt is good! DJT is the king of debt- why worry?
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  4. #4
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    Quote Originally Posted by raven View Post
    But it is perfectly OK for the US to be $22Trillion in debt
    Some here might say that that's different as the US can simply print money, unlike the millennials. Plus also consider who writes bankruptcy law, who the debt is owed to, and, if all else fails, who has nukes if someone tries to come and collect.

    Quote Originally Posted by Dozdoats View Post
    Hadn't you heard? Debt is good! DJT is the king of debt- why worry?
    Well, we should never worry, but we can be concerned. Regular people with about five percent of the country's entire debt accumulated over 240 years--raised in just a couple decades, mind--certainly could be a cause for concern.

  5. #5
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    Student debt can be blamed on many people. High schools should teach mandatory classes on student loans and personal finances.
    Giving every student a loan is just wrong. It is only done because it is backed by the taxpayers. If student loans were 100% private we would not have a student loan problem.
    Because every student can get a loan, colleges can charge as much as they want and that is why tuition has risen by leaps and bounds. Colleges spend a lot of money to get as swanky as possible to get kids to choose that college.
    But all of that is in the past. What to do now is the question. Of course no one is looking at trying to fix this problem. There is too much money involved. So Congress ignores it totally.

  6. #6
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    The time to be concerned about debt was while it could still be controlled. That ship sailed LONG ago.

    What most 'Murkins think of as "money" is actually debt in its own right. When you borrow money from the bank to buy a car or whatever, what document do you sign? Yep - a note. A note is an instrument of debt.

    So what is this?





    It's currency, but it is NOT money. And it is most certainly not "a dollar."
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  7. #7
    The student loan debt is much like the US Government debt in that most of it will never be paid back. Excessive debt on a macro scale has many unfortunate consequences but one of them is that it - eventually and in combination with many other factors - helps to drive the currency to worthlessness. On the individual level it does ruin lives and shackles many students with a lifelong, unpayable burden. We live in a debt-based economic system, so no one in that system, including and especially the universities, has any incentive to promote or teach a debt-free lifestyle.

    Best regards
    Doc

  8. #8
    Student Loan debt is unsecured. Meaning no tangible asset has been provided for collateral. Which means the lender relies completely on the "goodwill" of the borrower.
    Except the student debt cannot be extinguished through bankruptcy.
    The affect is "slavery".

    If you think about it the National Debt is pretty much them same. It has no collateral, relies on the goodwill of the US (and 7000 nukes). Cannot be extinguished through bankruptcy..
    Consider the ravens, for they neither sow nor reap, which have neither storehouse nor barn; and God feeds them. Of how much more value are you than a pesky raven?
    It is difficult to stand idly by and watch the vacuum of ignorance being filled with lies

  9. #9
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    Quote Originally Posted by Dozdoats View Post
    The time to be concerned about debt was while it could still be controlled. That ship sailed LONG ago.

    What most 'Murkins think of as "money" is actually debt in its own right. When you borrow money from the bank to buy a car or whatever, what document do you sign? Yep - a note. A note is an instrument of debt.

    So what is this?





    It's currency, but it is NOT money. And it is most certainly not "a dollar."
    That's actually led some to wonder if Trump isn't planning to kill off the Fed simply by releasing an actual US dollar complete with at least some level of gold backing. Now here, reasonable people might well interject "what gold?" but there are reports that there IS gold on hand now, just not where you'd think. There are rumors--and this may be purest woo, it's impossible to prove--that the Grand Canyon was teeming with the stuff, which explains why people aren't allowed in large portions of it.

  10. #10
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    I really do want to see how the pollytickians wiggle out from under this debt load.

    Meanwhile, educate yourself - go read the longish essay at

    https://fee.org/articles/what-is-a-dollar/
    What Is a Dollar?
    Tuesday, November 01, 1994
    Edwin Viera
    Economics Money and Banking Economic HIstory


    This is a condensed version of the monograph “What Is a Dollar?,” distributed by the National Alliance for Constitutional Money. All rights to this condensed version are reserved by the National Alliance for Constitutional Money, Inc.

    The question “What is a ‘dollar’?” seems trivial. Very few people, however, can correctly define a “dollar,” even though a correct definition is vital to their economic and political well-being.

    1. Why is a correct definition of the term “dollar” important?

    In America’s free-market economy, prices are expressed in units of money. Under present law, “United States money is expressed in dollars . . .”1Moreover, all “United States coins and currency (including Federal Reserve Notes . . . ) are legal tender for all debts, public charges, taxes and dues.”2Thus, defining the noun “dollar” is necessary in order to know what is the “money” of the United States and what constitutes “legal tender.”

    2. Do the present monetary statutes intelligibly define the “dollar”?
    The present monetary statutes do not define the “dollar” intelligibly.

    a. Federal Reserve Notes. Most people mistake the Federal Reserve Note (FRN) “dollar bill” for a “dollar.” But no statute defines or ever defined the “one dollar” FRN as the “dollar” or even a “dollar.” Moreover, the United States Code provides that FRNs “shall be redeemed in lawful money on demand at the Treasury Department of the United States . . . or at any Federal Reserve bank.”3Thus, if FRNs are not themselves “lawful money,” they cannot be “dollars,” the units in which all “United States money is expressed.”

    b. United States coins. The situation with coinage is equally confusing. The United States Code provides for base-metallic coinage, gold coinage, and silver coinage, all denominated in “dollars.” The base-metallic coinage includes “a dollar coin,” weighing “8.1 grams,” and composed of copper and nickel.4The gold coinage includes a “fifty dollar gold coin” that “weighs 33.931 grams, and contains one troy ounce of fine gold.”5Finally, the silver coinage consists of a coin that is inscribed “One Dollar,” weighs “31.103 grams,” and contains one ounce of “.999 fine silver.”6What is the rational relationship between this “dollar” of 31.103 grams of silver, a “fifty- dollar” coin containing 33.931 grams of gold alloy, and a “dollar” containing “8.1 grams” of base metals? Obviously, these are not the amounts of the metals that exchange against each other in the free market—that is, the different weights of different metals do not reflect equivalent purchasing powers. So, on what theory are each of these disparate weights, and purchasing powers, equally “dollars”?

    c. Currency of “equal purchasing power.” The United States Code mandates that the latter question should not even be capable of being asked. For the Code commands that “the Secretary [of the Treasury] shall redeem gold certificates owned by the Federal reserve banks at times and in amounts the Secretary decides are necessary to maintain the equal purchasing power of each kind of United States currency.”7Obviously, the Secretary has defaulted on this obligation to keep all forms of “United States currency” at parity with one other—that is, to maintain a “dollar” of constant purchasing-power, whether it be composed of gold, silver, or base metals.
    In sum, the monetary statutes do not define the noun “dollar” in a unique way. Instead, completely different things have the same name, things unequal to each other are treated as equivalent, and things that should have the same characteristics (i.e., “equal purchasing power[s]”) are quite different.

    3. What does American history and the Constitution identify as the “dollar”?
    History shows that the real “dollar” is a coin containing 371.25 grains (troy) of fine silver.

    a. The “dollar” in the Constitution. Both Article I, Section 9, Clause 1 of the Constitution and the Seventh Amendment use the noun “dollar.” The Constitution does not define the “dollar,” though, because in the late 1700s everyone knew that the word meant the silver Spanish milled dollar.

    b. Adoption of the “dollar” as the “Money-Unit” prior to ratification of the Constitution. The Founding Fathers did not need explicitly to adopt the “dollar” as the national unit of money or to define the “dollar” in the Constitution, because the Continental Congress had already done so.

    The American Colonies did not originally adopt the dollar from England, but from Spain. Under that country’s monetary reforms of 1497, the silver real became the Spanish money of account. A new coin consisting of eight reales also appeared. Known as pesos, duros, piezas de a ocho (“pieces of eight”), or Spanish dollars, the coins achieved predominance in the New World because of Spain’s then-important commercial and political position.8Indeed, by 1704, the “pieces of eight” had in fact become a unit of account of the Colonies, as Queen Anne’s Proclamation of 1704 recognized, when it decreed that all other current foreign silver coins “stand regulated, according to their weight and fineness, according and in proportion to the rate . . . limited and set for the pieces of eight of Sevil, Pillar, and Mexico” (forms of Spanish dollars).9

    By the American War of Independence, the Spanish dollar had become the major monetary unit of the Colonies. Not surprisingly, the Continental Congress adopted the dollar as the nation’s standard of value. On May 22, 1776, a Congressional committee reported on “the value of the several species of gold and silver coins current in these colonies, and the proportions they ought to bear to Spanish milled dollars.” And on September 2 of that year, a further committee report undertook to “declar[e] the precise weight and fineness of the . . . Spanish milled dollar . . . now becoming the Money-Unit or common measure of other coins in these states.”10

    Meanwhile, the Continental Congress worked on a new national monetary system. In his letter to Congress of January 15, 1782, Robert Morris, Superintendent of the Office of Finance, recommended that “our money standard ought to be affixed to silver.” Although Morris favored creating an entirely new standard coin, he recognized that, of “[t]he various coins which have circulated in America . . . . there is hardly any which can be considered as a general standard, unless it be Spanish dollars”.11

    In a plan published on July 24, 1784, Thomas Jefferson concurred that “[t]he Spanish dollar seems to fulfill all . . . conditions” applicable to “fixing the unit of money.” “The unit, or dollar,” he wrote, “is a known coin . . . already adopted from south to north . . . Our public debt, our requisitions and their apportionments, have given it actual and long possession of the place of unit.”12

    Yet Jefferson recognized the necessity of “say[ing] with precision what a dollar is. This coin as struck at different times, of different weight and fineness, is of different values.” So, Jefferson suggested, “we should examine the quantity of pure metal in each [type of dollar], and from them form an average for our unit. This is a work . . . which should be decided on actual and accurate experiments.”13

    On July 6, 1785, Congress unanimously “Resolved, That the money unit of the United States be one dollar.”14On April 8, 1786, the Board of Treasury reported to Congress on the establishment of a mint:
    Congress by their Act of the 6th July last resolved, that the Money Unit of the United States should be a Dollar, but did not determine what number of grains of Fine Silver should constitute the Dollar.

    We have concluded that Congress by their Act aforesaid, intended the common Dollars that are Current in the United States, and we have made our calculations accordingly.
    * * * * *

    The Money Unit or Dollar will contain three hundred and seventy five grains and sixty four hundredths of a Grain of fine Silver. A Dollar containing this number of Grains of fine Silver, will be worth as much as the New Spanish Dollars.15

    On August 8, 1787, Congress adopted this standard as “the money Unit of the United States.”16

    Many of the same people who served in the Continental Congress participated in the Federal Convention that drafted the Constitution. And even those members of the Convention who had not served in the Continental Congress knew what that Congress had done. Therefore, when the Convention used the noun “dollar” in Article I, Section 9, Clause 1 of the Constitution, it was with the tacit understanding of the relevant history. The lesson here is clear: The constitutional “dollar” is a fixed weight of fine silver in the form of a coin.

    c. Adoption of the “dollar” as the “Money-Unit” immediately after ratification of the Constitution. Upon ratification of the Constitution, Congress and the Executive began work on a national monetary system.

    On 28 January 1791, Secretary of the Treasury Alexander Hamilton presented to Congress his Report on the Subject of a Mint. Hamilton posed two questions, “1st. What ought to be . . . of the money unit of the United States?,” and “2d. What [should be] the proportion between gold and silver, if coins of both metals are to be established?”17

    On the first question, Hamilton referred to the resolutions of the Continental Congress and concluded that “usage and practice . . . indicate the dollar” as the money unit. As to “what precise quantity of fine silver” the dollar should contain, he surveyed the various dollar coins in circulation over the years, and recommended that “[t]he actual dollar in common circulation has . . . a much better claim to be regarded as the actual money unit.”18

    Turning to “the proportion which ought to subsist between [gold and silver] in the coins,” Hamilton recommended the domestic market-ratio of “about as 1 to 15.” “There can hardly be a better rule in any country for the legal than the market proportion,” he explained, “if this can be supposed to have been produced by the free and steady course of commercial principles. The presumption in such a case is that each metal finds its true level, according to its intrinsic utility, in the general system of money operation.”19

    Hamilton recommended the minting of two coins: a silver coin of 371-1/4 grains of fine silver (the dollar), and a gold coin of 24-3/4 grains of fine gold. “[N]othing better,” he wrote, “can be done . . . than to pursue the track marked out by the resolution [of the Continental Congress] of the 8th of August, 1786.”20

    Congress then enacted the Coinage Act of 1792,21embodying the constitutional principles that Hamilton had re-affirmed in his Report. First, Congress followed American tradition by continuing the use of silver and gold as money.22Second, it reiterated the judgment of the Continental Congress and the Constitution that “the money of account of the United States shall be expressed in dollars or units.”23and defined the “DOLLARS OR UNITS” as “of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenth parts of a grain of pure . . . silver.”24Congress also created a new gold coin, the “EAGLE, . . . . each to be of the value of ten dollars or units”25(i.e., the weight of fine gold equivalent in the marketplace to 3,712.50 grains of fine silver). It fixed “the proportional value of gold to silver in all coins which shall by law be current as money within the United States” at “fifteen to one, according to quantity in weight, of pure gold or pure silver.”26It made “all the gold and silver coins . . . issued from the . . . mint . .. a lawful tender in all payments whatsoever, those of full weight according to the respective values [established in the Act], and those of less than full weight at values proportional to their respective weights.”27And it provided free coinage “for any person or persons,” and affixed the penalty of death for the crime of debasing the coinage.28

    Thus, Congress did not create a “gold dollar,” or establish a “gold standard,” as the popular misconception holds. For example, the Encyclopedia Britannica erroneously reports that the “dollar . . . was defined in the Coinage Act of 1792 as either 24.75 gr. (troy) of fine gold or 371.25 gr. (troy) of fine silver.”29The Act did no such thing. It defined the “dollar” as a weight of silver, and “regulate[d] the Value”30of gold coins according to this standard unit and the market exchange-ratio between the two metals. Nowhere did the Act refer to a “gold dollar,” only to various gold coins of other names that it valued in “dollars.”31

    4. Where are we now?
    This history demonstrates that official Washington, D.C., has no conception of what a “dollar” really is. The reason for this self-imposed ignorance is obvious. By reducing the “dollar” to a political abstraction, the government has empowered itself to engage in limitless debasement (depreciation in purchasing power) of our money. A “dollar” that must perforce of the Constitution contain 371.25 grains of fine silver cannot be reduced in value below the market exchange value of silver. A pseudo-“dollar” that contains no fixed amount of any particular substance per “dollar,” on the other hand, can be reduced in value infinitely.

    Because debasement of money amounts to a hidden tax, Congress’ silent refusal torecognize the constitutional “dollar” amounts to the usurpation of an unlimited power to tax through manipulation of the monetary system. Thus, modern money has become a means for the total confiscation of private property by the government.
    One need not be overly pessimistic to predict that misuse by politicians of the fictional, constantly depreciating pseudo”dollar” to expropriate unsuspecting citizens will continue until an economic crisis finally shocks an increasingly impoverished American people out of its slumber, and forces the people to ask the simple question: “What is a ‘dollar’?” At that time, the answer will be no different from what it is today, and has been since 1704. []

    1. 31 U.S.C. § 5101 (emphasis supplied). See Act of 2 April 1792, ch. 16, § 9, 1 Stat. 246, 248.
    2. 31 U.S.C. § 5103.
    3. 12 U.S.C. § 411 (emphasis supplied).
    4. 31 U.S.C. § 5!12(a), 51120o).
    5. 31 U.S.C. § 5112(a)(7).
    6. 31 U.S.C. § 5112(e).
    7. 31 U.S.C. § 5119(a) (emphasis supplied).
    8. See Sumner, “The Spanish Dollar and the Colonial Shilling,” 3 Amer. Hist. Rev. 607 (1898).
    9. See An Act for ascertaining the rates of foreign coins in her Majesty’s plantations in America, 1707, 6 Anne, oh. 30. § I.
    10. 4 Journals of the Continental Congress, 1777-1789 (W. Ford, ed., 1905), at 381-82; 5 id. at 725.
    11. Propositions respecting the Coinage of Gold, Silver, and Copper (printed folio pamphlet presented to the Continental Congress 13 May 1785), at 4, 5.
    12. “NOTES on the Establishment of a MONEY MINT, and of a COINAGE for the United States,” The Providence Gazette and Country Journal, Vol. XXI, NO. 1073 (24 July 1784), in Propositions, note 11, at 9, 10.
    13. Id. at 11.
    14. 29 Journals of the Continental Congress at 499-500.
    15. 30 Id. at 162—63. After ratification of the Constitution, Congress made a more accurate determination of the value of the dollar, setting it at 371-1/4 grains of fine silver (as described below).
    16. 31 Journals of the Continental Congress at 503.
    17. 2 The Debates and Proceedings in the Congress of the United States ($. Gales compil. 1834), Appendix, at 2059, 2060, 2061.
    18. Id. at 2061-63.
    19. Id. at 2066, 2068, 2069.
    20. Id. at 2O82.
    21. Act of 2 April 1792, ch. 16, 1 Stat. 246.
    22. § 9, 1 Stat. at 248.
    23. § 20, 1 Slat. at 250.
    24. § 9, 1 Slat. at 248.
    25. § 9, I Slat. at 248.
    26. § 11, 1 Slat. at 248-49.
    27. § 16, I Slat. at 250.
    28. § § 14-15, 1 Star. at 249-50; § 19, 1 Star. at 250.
    29. Vol. 7, “Dollar” (1963 ed.) at 558.
    30. See U.S. Cost. art. I, § 8, el. 5.
    31. For the correct interpretation of the Act, See, e.g., A. Hepburn, History of Coinage and Currency in the United States and the Perennial Contest for Sound Money (1903), at 22.
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  11. #11
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    especially the universities

    At least two try - Hillsdale College and Mises Institute at Auburn U. in AL. Two out of - how many??
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  12. #12
    Sounds like the Cloward/Pivens strategy in full force - the very BEST way to "fundamentally transform America" - Now . . . let's get on with the engineered "re-set".
    The people of the United States are the rightful masters of both Congress and the Courts, not to overthrow the Constitution, but to overthrow the men who pervert the Constitution. Abraham Lincoln, 1859

  13. #13
    Seems hi-jinks down in FL on spring break have continued unabated. One does wonder what that debt really paid for. BTW. Word on the Street is that some Blacks owe over $200,000 in loans. Must have been majoring in Law.
    "The misfortune of many is the consolation of fools" Ancient proverb

  14. #14
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    Quote Originally Posted by Troke View Post
    Seems hi-jinks down in FL on spring break have continued unabated. One does wonder what that debt really paid for. BTW. Word on the Street is that some Blacks owe over $200,000 in loans. Must have been majoring in Law.
    It's not cheap to be a doktuh these days.

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    Quote Originally Posted by Troke View Post
    Word on the Street is that some Blacks owe over $200,000 in loans. .
    Just look at any doctor show on the TV. 75% of TV doctors are black. They all had to go to college.

  16. #16
    Quote Originally Posted by Troke View Post
    Word on the Street is that some Blacks owe over $200,000 in loans.
    That was the student loan debt amount shouldered by an anesthesia doctor-acquaintance in 1979, which paid for his entire U.S. medical education, back in that day.


    intothegoodnight
    "Do not go gentle into that good night.
    Rage, rage against the dying of the light."

    — Dylan Thomas, "Do Not Go Gentle Into That Good Night"

  17. #17
    Wages are low and job opportunities are very poor these days.

    When I got out of university, wages were still okay and I had $18.000:00 of university debt paid off within 6 months. All I did for six months was live in the jungle and pay everything I earnt towards my Uni, debt.

    The average young person these days is flat out paying living costs that alone anything else.

  18. #18
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    I just finished paying my youngest's final tuition bill. No one here has any college debt. And today that is a huge headstart
    "whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness"

  19. #19
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    Student debt equals slavery? Student debt is a voluntary contract. Slavery is not.
    Less typing, more prepping.

  20. #20
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    Some people sold themselves into slavery in the past, because living in slavery was better than starving to death. People went into debt, and sometimes their only collateral was themselves, their children ... A debt slave is still a slave.

    I think if you looked, you could find that in the Bible somewhere. Proverbs perhaps. 22:7 even.
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  21. #21
    Quote Originally Posted by Dozdoats View Post
    Some people sold themselves into slavery in the past, because living in slavery was better than starving to death. People went into debt, and sometimes their only collateral was themselves, their children ... A debt slave is still a slave.

    I think if you looked, you could find that in the Bible somewhere. Proverbs perhaps. 22:7 even.
    A slave is a slave is a slave - no matter HOW it came about.
    The one or ones who will "free" those slaves will be hailed as their savior and they will be made "king" - notice the rumblings of the "forgiveness" of student debt - and what that would mean. Yep - a total "re-set" and think of the other millions who DID slave to pay off those student loans - they will be more than angry - what will THEY demand in "reparations"?
    The people of the United States are the rightful masters of both Congress and the Courts, not to overthrow the Constitution, but to overthrow the men who pervert the Constitution. Abraham Lincoln, 1859

  22. #22
    Join Date
    Jul 2005
    Location
    Happy on the mountain
    Posts
    67,914
    So, how will everyone react when their created-from-nothing "money" re-assumes its intrinsic value - of nothing? Will they be pissed that their savings went POOF - or happy that their debt status is now more in question? How will said debt be re-calculated in the face of fiat currency going to zero? Will it be recalculated at all or will all debt also go to zero (I wouldn't count on that, but …)?

    It will be fun to watch.
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  23. #23
    Join Date
    Jul 2004
    Location
    State of confusion
    Posts
    7,817
    “The University of Michigan famously employs 93 full-time diversity staff, the top 26 of which make six figures. So, yes, college could be cheaper.”

    They need to get rid of 92 of them, from the top down. All you need to do is enter each applicant’s data on a spreadsheet, and sort by SAT scores. Cutoff by how many students you can accept. Done.
    If you really need numerical diversity, figger out how many of each perversion you must admit, sort into those groups, then sort each group by SAT, cutoff by required admission numbers. Done.
    "...Cry 'Havoc' and let slip the cats of war..."
    Don’t use your last bullet on them.
    I’m not afraid of dying...I just don’t want to be there!
    ...sell your cloak, and buy a sword...Second Amendment 1.0

  24. #24
    Join Date
    Jul 2004
    Location
    State of confusion
    Posts
    7,817
    Quote Originally Posted by hiwall View Post
    Just look at any doctor show on the TV. 75% of TV doctors are black. They all had to go to college.

    One of the shows, a few years ago, one of the doctors had worked her way thru med school modeling for soft porn photo shoots. The guys who found out gave her a lot of teasing. Her retort;
    I have no debt!
    Not for everybody, of course.
    "...Cry 'Havoc' and let slip the cats of war..."
    Don’t use your last bullet on them.
    I’m not afraid of dying...I just don’t want to be there!
    ...sell your cloak, and buy a sword...Second Amendment 1.0

  25. #25
    Join Date
    Mar 2007
    Location
    West Virginia
    Posts
    36,997
    We have a younger generation that somehow thinking everything should be free or handed to them and that the rich should taxed to no end to fund it, the problem that is it will only last a few years before the free life funding starts to run out and the the free flow of cash starts to become less and less. The hidden power that be elite with the help of the corrupt political system will keep taking what they can until there is nothing left to take.
    There will be no manufacturing as there is no incentive to do so and todays generation there are to many of them and they lack the skills to get by like our parents and grandparents did.
    Oh I can here it now just start of the printing presses and print more money, but where did all the money go from all the rich people that were taxed to the extreme to provide the free everything they wanted?
    They think things are bad and difficult now they have no idea whats waiting down the road for them if things keep going in the direction it's going.

  26. #26
    Join Date
    Jul 2001
    Location
    New Mexico
    Posts
    1,515
    Quote Originally Posted by hiwall View Post
    Just look at any doctor show on the TV. 75% of TV doctors are black. They all had to go to college.
    I'll bet they all got scolahsheeips because of their high academic standing, maybe just a few for their sports prowess.
    "How could it have come to this.. an army of rabble... [spit]PEASANTS[/spit]... everything WILL change -- everything HAS changed - England's "General Cornwallis" - from "The Patriot"

  27. #27
    You know whats funny?

    If an 18 year old goes to a bank for a $20+ Thousand dollar ( yes I know, not the actual Dollar) loan for a collage semester they do not even blink an eye. If that same 18 year old went in for a small business loan he/she would be turned down flat ( Gibsmedats and other assorted special people not included)
    I would remind you the extremism in the defense of liberty is no vice! Also let me remind you that moderation in the pursuit of justice is no virtue. Barry Goldwater

    There comes a time when even the common man must spit on his hands, raise the black flag and begin slitting throats. H.L. Mencken

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