What happened when Allco and Babcock and Brown went broke, or Ansett for that matter?
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Yes, yes, yes. I know the debt holders take a haircut, I was one in BBL. I was more wondering how this effects the fiat money system. Does the removing of debt out of the system have a geared effect in reverse?
If I and thousands of other people my age ....owe nothing to anyone, does that mean money has been leaving the system
Again a question of theory. If the population is ageing, then this should be translating into reduced need for debt. This is especially so if the 'good' reasons to go into debt, to gear into assets such as real estate that have been in an inflationary bubble all my working life, more or less, will in future not be a particularly brilliant strategy. So if consumers reduce rather than increase their debt overall, as % of income, how is that going to affect the creation of money?