Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (251332)	6/1/2010 7:21:04 PM
From: neolib	Read Replies (1) \| Respond to of 306849

i think you might be confusing wealth with money. private citizens can't create money unless they illegally counterfeit it. You recognize our current money as debt. Any time anyone signs an IOU they are creating money. The only real estate I've every purchased was done by signing an IOU with the seller. The seller can then use that IOU as money, although usually at a bit of a discount. The advantage is that I got a loan at better than bank rates, and the seller got interest at better than bank rates. But I also got control of income producing property which I could not afford without the assumption of debt (the credit of debt money). There is a robust secondary market for such notes. If you look in various newspapers, you will see advertisements to purchase such notes. They are indeed money. The first property I purchased this way, the note was eventually sold to a bank, because the holder passed away and the estate wanted to settle. We could conduct 100% of our economy by barter and IOU notes. No elites involved! The problem with this approach is that there is no central control of the money supply, and the quality of money various by the individual. Both are significant disadvantages. BTW, I'm not aware of what metrics are used to track this component of our money supply now. Based on myself and people I know, I would think it is significant, but I live in a rural farming community, and I suspect "handshake" deals are more common here than in urban settings.