My limited understanding of mortgage resets is that the mortgage rate is typically adjusted rather than calling the loan due. In this economic environment, I find it hard to believe that banks will call a note due if the customer is making regular payments. With mortage resets, I believe that banks can add on an additional 1-2% interest after the introductory 3-5 year term of the mortgage plus adjust the interest rate according to the current one year Treasury Bill (or other interest measures like COFI or LIBOR). Since interest rates are lower than they were a few years ago, it seems that the net mortgage rate should be about the same and not cause a worsening financial crisis.
\ \\ yes, that is the traditional defintion, but the new paradigm involves what Morganist and I mentioned earlier,
For number 3 that the US debt be switched to coupons that can be used domestically would seriously cause prices to go through the roof. He is basically talking about injecting trillions of dollars of coupons into the economy and you know what domestic items are going to be bought most? Gold...silver...platinum. It will go so high, that gold silver and platinum will be more expensive in the united states than other countries, which will then cause some people to smuggle gold from other countries into the united states which will then cause hoarding. Once that happens the world will be woke up to the fact that coupons and dollars and euros are just paper and the real money is the stuff that is being hoarded. First prices will quickly go through the roof, just like zimababwe, then trading will only be done in gold/silver. But even if they are not buying gold/silver and they are buying stuff like clothes, houses, cars, or whatever...those prices will go through the roof also just because of demand. $14 trillion dollars is ALOT of demand. Basically what they are talking about doing would turn us into a 3rd world country as US citizens wouldnt have enough money to buy anything.