Let us not repay the public debt!
Hungarian government debt is the “happy” owner of HUF 21,000 billion, that is, every four-member Hungarian family has a loan taken out by the state of HUF 8,400,000.
The interest earned on this is more than one trillion forints a year, which means that the state spends 400 thousand forints on the tax of our four-member family every year to repay the interest on the loans so far. (The amount spent on interest rates increases year by year, because nowadays the state can only renew its maturing cheaper loans at a higher interest rate. In vain, the boo category is an expensive affair.)
As it is a huge burden
More and more people are saying that they should refuse to repay their loans. In this way, the armorial capital hiding in the dark would not suck the blood of honest Hungarian people. By shaking off loans, we could be financially independent and strong again, and the economy could recover.
Well, in short, dear ones, this is a big bullshit.
“Shadow hiding in the dark” is nothing more than money market players like mutual funds, insurance companies, pension funds and banks.
Let’s think for a moment in the midst of the great revolutionary heat
Whose money are these companies investing in? Yeah, yours, my dear revolutionary soul mate.
The money that you put into the bank as a deposit that your insurer collected from you to cover future claims, or your unit-linked insurance that you invested in an investment fund or paid into your voluntary pension fund.
The Hungarian E-Money bank has close to one thousand billion forints in Hungarian government securities, the two big Austrian banks also hold the same amount of government securities, the Belgian KBC has a similar position and BayernLB holds over five hundred million in Hungarian government bonds (2011 data).
Let’s play with the idea that we are not paying back our debts and these banks are going bankrupt at that moment. Whose money will you lose? That’s right, the Hungarian depositors. (In a very positive case, deposits would be frozen “only” for years to decades, as in Argentina.)
Then your insurer will say I’m sorry your house burned down, but unfortunately my money to spend on it stuck with the Hungarian state, go to him, maybe he can help. The manager of your mutual fund is also bankrupt, and your money will be lost there, even if you kept the money somewhere else.
The failure of banks and insurance companies would bring the country’s economy into disrepair, compared to what the world crisis of 1929 would seem like a child’s play. Needless to say, the forint would fly to an unprecedented depth.
What about the money from the foreign war capital?
The savings of German, American and French retirees would be invested here by the pension funds and wanted to pay future pensions.
What would the German state say? The slightest sanction would be that a Hungarian product could no longer put its foot on the EU market. We could create a closed market for North Korea with a similar standard of living.
A similarly sensible solution is the non-repayment of foreign currency loans. One bank has 8% equity (this is the security buffer), all other money is in the hands of depositors and policyholders. The bank lives by collecting a lot of Aunt Marika’s savings and giving them to companies and individuals in need of credit at a higher interest rate. In other words, you did not buy a loan on the bank’s money, but on the money of the opposite Aunt Marika, the bank just passed it on to you.
So I beg you, at least you should not utter this crest of foolishness, which is becoming more and more crowded on the net, which is to deny repayment of public and private loans. That would cost us a lot.
Loans in our neck are not the result of leverage, but our own stupidity. For decades, we have spent and spent more than we can afford. Because we need a lot of government support, free travel and welfare spending over our rest.