“The is an old Chinese saying. ‘In the end, all debts are paid. If not by the debtor, then by the creditor.’
Math always wins.
Always.
L
There are trillions upon trillions of notes, functioning as money, which are backed only by the full faith and credit of people who create nothing and produce little or nothing of value. The bonds of Puerto Rico and the college loans of liberal arts majors are both in this category, as are urban enterprise zone loans, mortgages for people on welfare, and so on.
Theses debts will be unwound. That is beyond a doubt. Who gets screwed and how is our next big political story.
The banks are desperate to make sure it’s the taxpayers. One of the reasons Trump is hated by them is that he knows how they work better than most people do, and he may very well issue a Debt Emancipation Proclamation that excuses the taxpayers from debts they never agreed to, in which case life as Goldman Sachs knows it is over.
We live in interesting times.