The Counterfeiter's Tale

#1

Rasputin_Vol

"Slava Ukraina"
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#1
Suppose I am a counterfeiter. I have the latest and greatest technology available that allows me to print up as much real US dollars as I would want. They are literally in "mint" condition... perfect duplicates and can't be distinguished from any other bills in circulation.

Someone comes to me and asks me for a loan... a loan to buy a car. We sit down together, write up the terms of the loan and shake hands. I then go into the backroom and print out $25,000 for the guy and he goes off to make his purchase. (For the sake of this example, it doesn't really matter if the borrower is aware I have a counterfeit printing machine or not.)

Anyways, a year or a year and a half goes along and the borrower runs into some trouble. He's lost his job or been cut back on hours at work or run into some unforeseen medical expenses... whatever. Either way, he's behind on his loan payment. I go to the borrower and ask him to get caught back up or else. The borrower explains that he's doing the best he can. I give the borrower 3 more months to get his act together.

After three months, his condition has only gotten worse. At this point, I call up my buddy and we drive over to haul off and repossess the borrower's car.

Is this a just and noble business that I have created for myself?
 
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#2
#2
Or, the other alternative...

The borrower steadily and religiously makes his payments on time every month for the duration of the loan. At the end of the term, he has paid me back the principle plus interest. In exchange, I give him the title to the car.

Is this a just and noble business that I have created for myself?
 
#9
#9
Your hypothetical is EXACTLY like our government monetary policy in every respect. The scenarios are 100 percent the same. (sarcasm)

I award you no points, and may God have mercy on your soul.

How is it different?
 
#10
#10
You can answer the question:

Is this a just and noble business that I have created for myself?

Just? No, in that you broke the law and exposed another person to legal peril. If you were a bank or a lender lending within the bounds of the law and sound ethical practice, then that's just.

Noble? I don't buy into the concept of nobility in the business world. Nobility is for charities.
 
#11
#11
So I'm the counterfeiter. I go out and make agreements with countless other people and issue loans to them for various items. Cars, boats, homes... anything that is tangible and can be used for collateral, I will lend people the money to purchase.

For a while, I have a good business going. The majority of these people are paying on time, with a few late payments here or there, but for the most part, everything is running smoothly. Then, a change in the economy occurs. Turns out, other people out there with printing presses are doing the same thing I'm doing. So now, there is a lot of easy credit available for consumers to take advantage of. What happens then is that with all of this counterfeit money floating around and driving up demand on real products, you are starting to see price inflation, as the sellers of the cars, boats and houses start to raise their prices. The average amount of my loans starts to increase as the price of these items begins to increase.

Over time, the prices get so high that most people getting loans now are getting loans that they will have trouble paying back. All it takes is for something to happen in their personal lives and poof... they've essentially fallen behind on payments and are jeopardizing their lifestyle. Soon, more people that other counterfeiters and myself have lent money to begin to fall behind or default on their loan payments. Things begin to get out of hand. Even though we have the power of the printing press, we still need help from somebody. So, we counterfeiters go to the government to ask for help. They oblige by taking over the terms of the defaulted loans and carry them on their books, meanwhile, the counterfeiters are freed of most or all of the responsibilities that went with issuing the loans. Now, the taxpayers of the govt are on the hook for the defaulted homes.

Is this a just and noble business that I have created for myself?
 
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#12
#12
Just? No, in that you broke the law and exposed another person to legal peril. If you were a bank or a lender lending within the bounds of the law and sound ethical practice, then that's just.

Noble? I don't buy into the concept of nobility in the business world. Nobility is for charities.

How is what I did illegal? If the borrower would have lived up to his agreement, then there would have been no harm, no foul. I would have been repaid my loan plus interest, the borrower would have full possession of the car with the title free and clear, and GM/Nissan/Toyota would have been paid.

This entire operation would have worked like a charm if it wasn't for this consumer defaulting on his agreement. Much of the burden should rest on the borrower, correct?
 
#13
#13
How is what I did illegal?

Counterfeiting, even when done very well, is illegal. Passing hot bills to someone else is illegal.

If the borrower would have lived up to his agreement, then there would have been no harm, no foul. I would have been repaid my loan plus interest, the borrower would have full possession of the car with the title free and clear, and GM/Nissan/Toyota would have been paid.

This entire operation would have worked like a charm if it wasn't for this consumer defaulting on his agreement. Much of the burden should rest on the borrower, correct?

That's how lending works, minus the phony currency.
 
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#15
#15
Kinda like it is illegal for me to murder a guy on the street for selling cigs but legal for cops to do it. See, its diffferent.
 
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#21
#21
How do you protect yourself from fraud? Assume that a potential applicant knows you're a crook, but he or she is a better crook. You loan Joe Sixpack 25 large in monopoly money, he promptly launders it into an equivalent amount in gold, then disappears. Your collection effort reveals that the real Joe Sixpack had his identity stolen 6 months ago.

Now, technically, you're not out anything since you printed the money in your basement, but your collection effort has just potentially exposed your operation to legal scrutiny.
 
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