buffett zero to hundred pc in shares, page-54

Hi Skipperx,

What I meant by unfunded debt is debt which will never be paid.

Debt is not money. It looks like money and it certainly is a promise to pay money, but it only becomes money when it is paid.

Banks made the mistake of thinking that debt was an asset, that is, it is as good as money.

Now the debtors have no means to pay or won't pay, the debt is unfunded, not backed up by anything, and will simply disappear.

Money is an exchange of value. There is no value in debt until money is paid for the debt.