[p2p-research] Part 2. How Often Have Sovereign Countries Defaulted in the Past?

[Ryan Lanham]

All value is an agreement.  That's why markets are essential.  Value cannot
be mandated.  It can only be agreed.  Money works because it is the perfect
P2P technology.  Value agreement can be a state function, only so long as
the state is itself a valid peer amongst other states.  As soon as peer
status is lost, then value is no longer agreed.  This happens all the time.
It is during that time that banks lose the capacity to transfer one currency
into another.  When one currency cannot be transferred, it becomes
valueless...because peers stop agreeing to a value.

Debt is merely the capacity to buy a future or forward on the value one
theoretically will have some day in the future.  It is a promise to maintain
a commitment to transfer value in the future.  Failing at that promise is
called default.  Again, that has happened tens of times.

Each time it does happen, the place that defaults typically sees their
economy instantly shrink by 1/20 - 1/8 in size...instantly.  That is, the
wealth of the collective people's aligned under that currency collapses by
one part in 10 or so.  Imagine someone walked in to your house and took away
10% of your stuff.  That is what happens when you default on a currency that
has an agreed value of exchange (even one that floats in a market).

On Sat, Jul 10, 2010 at 3:42 PM, Patrick Anderson <agnucius at gmail.com>wrote:

> Ryan Lanham wrote:
> > There are certainly a lot of countries
> > that wish they hadn't borrowed so much.
>
> But why would a nation borrow at all when they have the right and even
> responsibility to issue that money for themselves thereby avoiding
> debt altogether?
>
> It's difficult to slow down enough to reconsider the current
> direction, but please try to think this through.
>
> Most citizens assume their nation is issuing the currency they use
> because it is beyond comprehension to think we would borrow it from
> someone offshore.
>
> It is an act of *treason* to borrow from foreign nationals when we
> could otherwise issue these notes FOR FREE.
>
>
> > Rent is a good deal if you use the capital wisely.
>
> Are you saying it would have a negative impact on a nation for them to
> avoid debt?
>
> What are we so scared of that we will not take that
> responsibility upon ourselves at the federal level?
>
> The US National Debt would be exactly $0 if we would only choose to
> issue our own currency.
>
> So answer the question please:  why do most nations suicidally choose
> to needlessly accumulate massive debt when they could alternatively
> simply issue their *own* currency?
>
>
> Thanks for your consideration.
>
> Sincerely,
> Patrick Anderson
> Social Sufficiency Coalition
> http://SourceFreedom.BlogSpot.com
>
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-- 
Ryan Lanham
rlanham1963 at gmail.com
Facebook: Ryan_Lanham
P.O. Box 633
Grand Cayman, KY1-1303
Cayman Islands
(345) 916-1712
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