World Debt increase
- Thread starter imoldernu
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I am uncertain how to think of this. It seems to me that the world is a closed system. Accordingly, for every debt, there is an offsetting credit somewhere.
NW-Bound
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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At what point does the debtor go bankrupt, and the creditor loses his money?
That's the $100 trillion dollar question.
PS. Can I avoid being the creditor?
That's the $100 trillion dollar question.
PS. Can I avoid being the creditor?
HFWR
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
No problem, just do a reverse split. A trillion is now a more manageable thousand. Of course, your IRA is now worth $0.32...
Was thinking the same thing. Who does the world (earth) owe this money to?
I think it works out as owed to the people of the future.
So the people from the present will owe money to people from the future? Do I get in my DeLorean, accelerate to 88 MPH, pay someone in the future and then return? Or if I stay in the future someone from the present will somehow pay me? Do we put $ in a trust fund now so future generations can have it? I paid my daughter in 1996 when she was 1 yr old. It has grown and she now has just shy of 50K in that account. She is grateful.
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I think it works out that it is owed BY the people of the future. I guess they owe it to others in the future, so the circular reference continues.
I'm not looking forward to being thrown into Galactic Debtor's Prison with 7.7 billion of my closest friends.
A discussion about debt without mentioning assets is like being shocked at the amount of mortgage value but ignoring the value of the house. It’s an incomplete picture.
Credit-Suisse publishes a yearly report on global wealth, and it is data rich, a wonderful source to look at numbers and trends. https://www.credit-suisse.com/about-us/en/reports-research/global-wealth-report.html
They estimate global wealth to be US$ 361T.
Credit-Suisse publishes a yearly report on global wealth, and it is data rich, a wonderful source to look at numbers and trends. https://www.credit-suisse.com/about-us/en/reports-research/global-wealth-report.html
They estimate global wealth to be US$ 361T.
GravitySucks
Thinks s/he gets paid by the post
It is owed by us in the future. Not by some unknown number of future generations. Well, maybe one generation out on 30 year bonds. So just you, your kids, and maybe your grand kids.
I just bought some 5 year Treasuries. In 5 years part of my tax money will be used to redeem those bonds.
I just bought some 5 year Treasuries. In 5 years part of my tax money will be used to redeem those bonds.
Its all fake. Money is printed from thin air. It has no backing. Its an arbitrary number. Actually, its a talking point to push an agenda by politicians. The US isnt paying someone or anyone back. Why would we. Just call up the fed reserve and print more money. Wake up. Some people need to pull the curtain back and do some real research.
Masquernom
Full time employment: Posting here.
It's not so much the debt you see today, it's the interest we pay on the debt today that impacts us. The interest payments are the fastest growing category of the US budget. As they grow, they begin to squeeze out other spending categories.
The old economics decision was between butter and guns. Now it's butter or guns with what's left over after the interest payment on the national debt.
The old economics decision was between butter and guns. Now it's butter or guns with what's left over after the interest payment on the national debt.
HFWR
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Send all your worthless money to me...
NW-Bound
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Come to think of it, it is likely there are more debtors than creditors. When push comes to shove, who is going to win?
I am going with the majority. It's always the safest place to be.
Now, how do I borrow money? Oh, it's already done on my behalf. All right!
donheff
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
According to modern monetary theory it all works out - until it doesn't.
EastWest Gal
Thinks s/he gets paid by the post
The money is owed to other people in the present, to be paid in the future. If too many people default, then the creditors don't have any more money to loan. No one can borrow any more, the world freaks out. There is wringing of hands, gnashing of teeth, the stock market crashes. Then the government prints more and bails out the creditors, so that they can go back to loaning money. Cautiously at first, then more freely. The stock market recovers. 2008-2009. Again.
I'm no economist, so what do I know?
I'm no economist, so what do I know?
HFWR
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Funny, though, for all the naysayers, we still seem to be doing it. We ‘re just calling it something else.
marko
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So who receives these interest payments? To whom does the money go? Is this like the interest I'm paid on my HY bonds every month?
Is there some entity out there making a killing on $X Trillion?
Markola
Thinks s/he gets paid by the post
Same with supply side economics. We have lots of voodoo schools of economics to choose from.
