What is Beautiful Deleveraging?

less than 1m read

·Nov 8, 2024

A number of people asked me, "What is a beautiful deleveraging?" Well, first let me start with what is the deleveraging. Sometimes there's too much debt burden, which also means that somebody's holding too many debt assets and they're not going to get paid.

So, what is necessary is to bring those things down in relation to incomes, and so that's a deleveraging. What is a beautifully leveraging? A beautiful deleveraging is when that happens in a spread-out way over a period of time and in a balanced way.

Now, spread out, let me give you an example. If you can't pay all your debts, maybe you can pay 70 or 80 percent of those debts, and you spread that over a period of time. For those who are not getting those debt payments, then that shifts their burden over a period of time.

There are two ways of bringing down those debts: paying less or having the Central Bank print money, which produces some inflation pressures. When they do that, if they print a little bit of money and then you have the restructuring, they can balance each other and make it a smoother and less disruptive. That is a beautiful deleveraging.

The Ponzi Factor: Trailer Part 2 (Unfinished)

Introduction to the federal bureaucracy | US government and civics | Khan Academy

View All

15 Dumb Ways to Spend Your Money

Alex, do you ever find yourself, like halfway through the month, and wonder where your paycheck went? Well, you’re not alone. Okay, we all have those moments where we splurge a little bit too freely, sometimes in ways that might make us cringe later on. L…

15 Platforms That Can Make You RICH

The Internet made us rich. As blatant as that sounds, our path to wealth would have been completely different if the internet wasn’t around. Looking at the current landscape, there have never been more wealth-building tools and platforms available to the …

Contentious | Vocabulary | Khan Academy

I’ve got a bone to pick with you wordsmiths because this video is about the word contentious. Contentious is an adjective and it means involving arguing, quarrelsome. We had a contentious debate over whether bears were scarier than snakes. Kind of looks l…

Credentials don’t matter

Smart people, capable people, don’t let themselves be pigeonholed into one definition. That is a disease of credentialism. Because we created this university, now you’ve got to go to university, and you’ve got to get a degree in something. Then people say…

My Life Story

A question I get asked surprisingly often is, is Veritasium a real element? Nope, I made it up. Having fun When I was a kid, about 10 or 11 years old, I went to this Genghis Khan exhibit at a museum, and I didn’t know much about Genghis Khan except he was…

Why Does The Earth Spin?

So, I’m down in West Vancouver, British Columbia, which is where I grew up. At the local beach, there is this 2 and 1⁄2 ton granite sphere that was made to have a tolerance of 200s of a millimeter. This is an amazing granite sphere, and it’s floated on a …

What is Beautiful Deleveraging?

More Articles