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How Is It A "Loan" If No Value Is Exchanged?

Transcript of the above video:

As the title of this video suggests, we are discussing "how can something be a loan, if no actual value is exchanged?" And we will get to the analysis in a minute. But I thought of making this video after reading an article from the Bangkok Post, that is, that really got me thinking. It got my gears turning; I actually was laying in my bed thinking about this but quoting directly, the article is titled: New Digital Wallet Complaint Targets PM, Pheu Thai. Quoting directly: "Activist Srisuwan Janya on Wednesday complained to the Election Commission (EC), accusing Prime Minister Srettha Thavisin and his coalition-core Pheu Thai Party of deception in the 500 billion-baht digital wallet handout." So I urge those who are watching this video, go check out that article in detail. I am not going to get into the crux of what that article goes into but basically this activist is filing suit, saying look, you said a couple of things, one that the money for this program was going to come from the National Budget rather than from a loan, that seems to be one of the big points of contention this person is bringing up as well as the issue of urgency. Apparently there is the claim that this is urgent and as I have said before I don't see where the real urgency is to bring this in and that seems to be brought up there as well but again go check out that article for all the details on that. That said, quoting one more excerpt here: "However, last week Prime Minister Srettha announced the Government would push through special legislation allowing it to borrow the money to fund the scheme." Here is my question. How could, okay so the nation goes into debt via a loan, so Parliament basically says we are going to go take out a loan and basically create new debt, I don't know how they would do it; bonds or whatever, but they go out and create new debt and then they use that debt to give this "handout" to people here in Thailand. 

As I have said in prior videos and we have cited it from these sources, including the Bangkok Post, this isn't money in the sense that it is cash. So this isn't a loan that the Nation goes out and takes on 500 billion Baht in debt and then cuts it up in 10,000 Baht increments and gives it to each person in the country. No, it comes out as this digital token that you can't spend it on hardly anything. I mean the restrictions seem to be longer than what you can actually spend it on; I fail to see how it is even considered currency in any sense of the term. So then the question becomes where did the value of the 500 billion go? At the end of the day, where did that go? I don't see where it ever existed. Okay the Nation goes into debt, our debt-to-GDP ratio goes up and via taxes we have got to all go pay it back but what we got up front was not money, it was these tokens that can't be spent on anything. Again and we went through the citation in prior videos where we talked about they said “you can't spend it on fuel, you can't use it to pay debts, you can't use it to pay tuition, you can't buy cigarettes and alcohol with it.” I mean as I say, it seems the list of restrictions is longer than the things you can use it for. So then the question becomes, how is that really a loan because how is value exchanged? How is value transferred? The "recipients" that are supposed to be the beneficiaries of this massive expenditure, this massive loan that is going to saddle the country, the recipients don't actually get the money. They just get these things that they can use to go buy a very limited number of things. So I don't really see how value is being exchanged or transferred.

Again with a normal loan, you get a loan on your house- okay the bank loans you a million Baht. You go out, you build a house and now you have a mortgage encumbered on that house; you pay back that million Baht with interest but you got the value. You went and got a house. Where is the value here? Where is the value exchanged from the loan to the end user? It goes through this for lack of a better term, and it is almost becoming clichéd at this point in our society, at this point in time in the world, this Orwellian, Dystopian surveillance tokens, chits - I don't even know what you want to call these things - but at the end of the day, it's not an apples to apples exchange, it is not a true exchange in value. So I fail to see how this could even be, let alone the issues of urgency. And I am not even going to speak to that and I can't get into the high weeds of things about the difference between a loan and taking it out of the national budget but at the end of the day, where's the money, where is the value, where is the medium of exchange that operates one-for-one for the debt incurred by the Nation?