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Cake day: July 15th, 2023

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  • Let me try understand this.

    Say you owe the bank roughly a million dollars and the house is only worth half a million. If you continue to pay the bank, you are paying double price for your house, plus interest.

    Material cost or anything spent never change? We can’t regret buying expensive computers in past? Everything, even if loan. Loan only default on bankruptcy, “no property ownership ban”? Do people want that?

    There no investment, no economic growth, no liquidity.

    Incentive of “profit” system. Until it backfires with overloaded money. Active income generate economy of production + money. Passive income skip production, overloaded money, inflation. Without profit system, big projects can only funded by slower tax/donations. But no one creating extra profit/inflation.

    So you now get my point? Deflation happens because of good automation (slaving machine). Stopping passive income investment stops inflation. While waiting new automation, things get lesser labour and no inflation to demand additional income.

    Where’s the loophole in my opinion?


  • If you borrow a million dollars from the bank to build a house and then in five years that house is worth half a million…

    I don’t understand much. What so bad about house losing value, if we never intended it as capitalistic investment?

    Everything suppose to be “utilitarian” basis instead of ever-inflating “profit” basis that hurt majority, no?

    Just my curiosity why deflation is a bad thing, other than monetary incentive system broke down and no one working (right now, monetary system still broke down on opposite spectrum due to purchasing power collapse, I assume?)

    Edit: clarification

    Profitable or not, a house is a shelter, not renting or trading item? (This is what I meant by capitalistic mindset, not about corporation, but the very profit mindset of human.)

    Edit2: clarification2

    Yes, same opinion on investment and passive income. All capitalistic nature. Impossible to earn passively unless someone or some machine enslaved, right? Yet everyone love passive income idea so much, pumping profit everywhere, more money more inflation, no? In the past, people might save years to a house, now, people earn endless passive income to no house, I think that’s the very reason to it. Passive income is somehow bad. (Not to be mixed with voluntary welfare system, passive income is auto sucking involuntarily, iinm)

    Edit3: clarification3

    So about the house worth dropping. In bookkeeping, historical cost don’t drop. However, future value inflation exist thanks to “profit future inflation”. So, we still have to settle book value of loan, I don’t get it how the value dropped though? A liability is a liability, not to be messed with “inflating fluctuating market value”, no?