Phil Tower, Program Director, W. T. K. discussed on Heartland Newsfeed Radio Network


Hey guys thanks for taking my call i i listen to you as faithfully as a kid every sunday night and it's always a fascinating show that you guys have i i appreciate that and and we appreciate being on w. t. k. g. one of our longest running affiliates out there so if you like the show do us a favor and call up phil tower and tell him thank hewitt WT KGB's teller tower the program director there and he's had his on for a long time yeah he's been around longer than dirt it's true guy though that you're the subject that you're talking about forgiving student loans my wife is a bank a banker and you guys were talking about about you know how the banks kind of have a built in hedge against defaults on loans true yes i can assure are you that is not the case they may have some they may have some protections for example of someone declared bankruptcy or default honest wanna say mortgage if you're talking one or two at a time or a few at a time that's manageable but when you're talking one point five trillion dollars all that one that the problem you can't just toss the baby out with the bathwater so to speak because that's not good for anybody but wait a minute the banks the the money from thin air in the first place through fractional reserve backup proposing going after the banks on this one because i think that would be bad for the economy okay but hasn't the government taking over the student loan program cases yesterday curly involved in some cases the government will guarantee the loan own in other cases the government is basically giving the loan and if the government which you know has a deal with the federal reserve serve which was a collection of major banks to just sort of make money as it parallels money to an existence if they just decided to cancel each other's debt no one really loses anything in this and then it would spur the economy whereas if the government decides to if the banks if the government decides to just force the banks to eat it yeah that would be bad for the economy but if the government says all right one one point five trillion dollars in debt we're going to meant a one point five trillion dollar coin we're going to make it at a ten because we don't want to spend the money on platinum and we're going to just hand that over to the federal reserve and that will cancel one point five trillion of our debt that we guaranteed the loans with and then poof it all just disappears but what's it's okay but i guess i don't follow what you're saying mark regarding the bank here so if the bank issues student loans and some banks of done that the bank issues a student loan yep they've created the money from thin air you talked about this i think last night about how when you sign a loan authorization and they're not on the hook for it well missile taking them off the hook for your cancelling the debt well if the government cancels the debt yes if the government as the bank credits the bank for their loan so let's say you're a bank thank i'm the federal reserve the money came out of nothing so they don't let eventually and i'm the federal reserve all right uh-huh where a member bank because basically you can't be a bank without being a member by reserve you at richie comes to you for a student loans okay okay he says i'd like student loan hundred thousand dollars created in the book richie can't pay this was a terrible idea i should've never back this as the government but you're going to give the loan because i'm the government and i'm backing it right the loan for for one hundred thousand dollars of money that never existed before we loaned right never existed before you loaned it right now it's exists but richie can't pay it back and it never gets paid back right right right well that loan is still on your books and you are responsible for it to move to the federal reserve serve it's been created it was created out of thin air i guess it's to your investors i don't know i mean it's it's monday was created out of nothing right so how can you be responsible for something that was created created out of nothing basically all that's happening here for my understanding and by the way i'm not an expert these things but you're you're just what's happening is when these loans are created its it's money coming out of nothing because this is the fractional reserve system this is the sort of the benefit of these banks being tied into the federal reserve is they're given the ability to issue money in these in in the form of these loans that never existed before it's just numbers in an assistant so they i you know i give you this loan ritchie it's one hundred thousand dollars to go to college the this whole loan loan forgiveness thing comes in and you're like what you walk away and we just basically ignore the fact that you owe us money we're just cancel the account that just means that extra hundred thousand dollars is out there and it never gets it never comes back in so inflates the money supply but that's already been done the money supply was inflated when we issued the loan in the first place okay so whether it comes back or not is it really going to make that big of a difference on inflation in the long term skit acquired here's here's a missing here's the thing we're in a capitalist economy or capitalist society so where does it end it's not even just about the economics in in terms of this particular subject i have a mortgage why can't i have my mortgage forgiven i made the choice to buy a home run if i'm in overhead why can't the banks it's just forgive that loans it's about responsibility it's about life choices because and i i tend to agree with you support the idea of banks younger generation she didn't want everything handed to free healthcare free college free everything they want to have it handed to them without having the opportunity to actually actually earn it and have some sort of sense of self satisfaction and the fact that they worked with it i'm in my fifties and i've earned and worked for everything that no one's ever for giving me anything that i didn't pay back no i totally understand where you're coming from with this i mean i i liked said i in favor of the idea bankruptcy at all but mark you made a strong argument that a a lot of these college loans were based off of fraud where these young people were told oh you're going to do so much better in life if you get a college which education right and they don't tell you that you need to go get a degree that you can use to get a job right i was just jujitsu on thursday night with a young man getting ready ready to graduate this year i asked him what degrees any says biochem i said good for you and you know i mean he's absolutely going to be able to go out and get a job bob with a biochem degree how the flute the last person i talked to blessed woman i talked to that was going to that school is getting a women's studies degree in what do you do use that for she can look at herself so i wanna i wanna go back to what you said initially robert again at the beginning of your call because is i think there's there's a lot to parse out with the entire discussion my point with saying that the banks have built into the interest rate is not saying that i agree that wiping out one point five trillion dollars off the books is is a good thing what i'm saying is if you look at like payday lenders versus banks right there there's an inherent risk to loaning money out to people with the lord ability to repay that loan right so when banks when banks or payday lenders or any lender at all assesses the viability of a loan being repaid they make a decision as to the interest rate charged based on the risk that they're taking at that time right and i and i'm also suggesting that especially in payday loans and banks that interest rate is based on the fact that they do not intend to recoup all the loans they laid that they lend out they know that not all loans are going to be repaid by and in order to recoup the funds they set interest rates on people who will pay maybe a little bit higher to make up for it but the difference is between say a regular bank loan for a house else if there is a default on that loan for a house the bank has an asset right here right right try to recoup that's where they had just not about the interests they charge it's about the assets that they have the laurie points today robert with back yeah you can't lock the kid up hey thanks for the call tonight i appreciate appreciate hearing from.

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