BlutoSays wrote:Where the hell did you think the money would come from? Did you really think debt would just be "canceled"?
https://www.cato.org/sites/cato.org/fil ... lation.pdf
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Then Bluto replied:
It's not "fine" to enact loan forgiveness for anyone. I'm tired of you saying well they did it, so they should do it. I'm not in favor of loan forgiveness for anyone. It's a moral hazard.
The is no loan forgiveness. Forgiveness is a LIE you keep in your head. The loan is added to the federal debt for the tax payer to deal with. However, the tax payer didn't sign up for these loans. They have their own problems to deal with. I'm sure you believe in the tooth fairy, but I don't. It is unfair to saddle the tax payer for the piss-poor decisions of others. Stop doing that.
BTW, Kelton is the former chief economist in the U.S. senate committee on the democratic staff.
And Thom Hartmann? Commie extraordinaire? Really? Big WTF there, SA!
BlutoSays, I'm talking to you.
The basic idea of a person being 'stupid' is the he/she is unable to learn new things. You seem to be unable to learn new things.
In this discussion, you seem the have been unable to learn that banks create new dollars with every loan.
So, it follows that, forgiving or canceling the debt does not deprive the bank of any money that it had before the loan was made. In any case the US Gov. is going to make the bank whole in every case anyway.
I read your OP as saying that it was economically not possible to or very damaging to cancel the student debts. So, I showed everyone that others (Repuds) who joined you in opposing this had had their PPP loans forgiven.
You asked where "he" (Biden?) thought the money would come from to make the banks whole after the loans were cancelled (I think this is what you meant). I'm sure that Biden knows that the money will come from the same place that the money to make to loan in the 1st place came from, i.e. the thin air. You, OTOH, don't seem to know that banks create all the dollars out of thin air to make every loan. I have told you this 3 times, and provided the evidence for this (the experiment with 200K euros around 2014) 2 or 3 times. I sick of reposting it.
So, in my 1st reply, I used the word 'fine' in the sense that it is economically fine, just like forgiving PPP loans is economically fine.
Now, you want to talk about 'is it morally fine'. My reply is that the Gov. has already forgiven the much bigger PPP loans to many comp. owned by people that had a larger ability to repay them, than the students do. I see that it is morally wrong to forgive the entirety of the large PPP loans, and then not forgive any part of student loans. They both have the same moral hazard. IMHO.
Your final point is also a result of your seeming inability to learn new things.
Yes, the money to forgive the loans will be added to the national debt. This is just like the money for Reagan's increase in the size of the US fleet was added to the national debt. I don't see that anyone is or has been paying higher taxes as a result of that.
I have proven 3 times here that the national debt can never be paid off, except by just creating about $30T new dollars to do it. Despite what economists say, it is flatly impossible to run a $30T surplus to pay it off with a surplus. Economists who talk as if this is a good idea are gaslighting you. That is, they are lying to you. They have to know what the economic effect of having a $500B surplus for 60 years would do to the US's AND THE WORLD'S economies. That is, that it would soon cause the largest/deepest depression in history. Millions would die, for nothing. [Assuming that ACC is not really a thing at all.]
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