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Thread: Huge National debts and external debts to GDP, how possible?

  1. #1 Huge National debts and external debts to GDP, how possible? 
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    It's fairly common for a family that has recently bought a house to have four or five times their yearly gross income in household debt.


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    War is just around the corner. What, in this day and age !
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    Forum Cosmic Wizard icewendigo's Avatar
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    Since the 70s most economies in the world are part of a giant debt-based ponzi scheme. Many European nations used to have the ability to issue their own money and the tool of monetizing debt to pay for projects at no interest and have since been locked into borrowing at interest on the market for the money they needed in their economy. Many countries been paying interest that totals to a giant amount close to the total of the debt, and interest payments themselves often is close to the amount that needs to be borrowed. Its a giant usury fraud on a planetary scale.

    The video Money as Debt covers this, along with other issues such as Fractional Reserve banking, but if I find a short and simple video (in English) that covers the part above I'll post it. Note that the US is slightly different because of the Petro-$ hegemony but some of the dynamics apply as well.
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    Quote Originally Posted by Stanley
    Do you know what is the sense for many countries such as China,Russia
    and many other to store huge money reserves (trillions) in U.S. dollars?
    Political power worth trillions, would be the first guess.

    But they don't necessarily "store" it by stuffing it under giant official mattresses.

    Quote Originally Posted by Stanley
    U.S. dollars commonly experience inflation and if inflation is at modest 2% a
    year it means your money deflate 20% each 10 years
    That depends on the inflation rate elsewhere, and where you plan to spend the money, and the interest rates available on secure investments meantime. If I want to buy things in Spain, and the inflation rate in Spain is 5% while Spanish government bonds pay 4%, I might prefer US bonds at 3% with a dollar inflation rate of 2%, and plan on exchanging the currency later. If so I would keep my reserves in dollars, and maybe 2/3 of it in the form of US bonds, until needed.
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    If we believe to this debt clock (look higher) average american family savings are only
    $ 4.817 per familiy.Is it really so small ?! Do you know what could they
    mean as savings? Is it bank deposits? If this is true americans should be
    really desperate.I don`t understand how U.S. banking system could still
    exist.Usually banks invest people`s savings in economy.If there is no savings
    there is no investments.
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    "If there is no savings there is no investments. "
    Huh? Americans just cut out the middle man and invest it straight.
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    Even the worst national debt is only a tiny fraction of the total value of that country. It is like a family that owes $100,000 on their house, when the house is worth $10,000,000.

    If a country owes $100 billion, and the country as a whole is worth $10 trillion, then the government can print money. That causes inflation, and lowers the value of everything. The country may then, after paying off the debt with printed money, be worth only $9.9 trillion. Of course, the people and institutions that hold the debt don't actually want it paid back!
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    Sorry, Stanley, I don't actually know that, but many, many trillions more than the debt.

    Here is a graph that might have some value.

    http://upload.wikimedia.org/wikipedi...0px-USDebt.png

    This shows that American debt at the end of WWII was higher than today in relation to GDP, and the country recovered. All you need do now is get some sensible politicians, and reject the warmongering idiots (I am not naming George W. Bush) who want to waste your money on ridiculous and damaging overseas military adventures.
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    Last edited by Stanley514; September 6th, 2017 at 08:19 PM.
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    The difference between WWII and today is many lives were lost in the war which allowed room for new ideas to emerge to get them out of debt. Today that is not the case so any comparison to then and now is the difference between apples and oranges.
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    When do you think will be ultimate blow up of this scheme under current tendencies?
    In 5-10-20 years?
    I dont know, its artificial, so I guess it can be propped up or rebooted, but either way the money based system (and oligarchic hierarchy) as we know it is an aberration that is hurting humanity.

    We are just so used to it that we cant think outside the box and cant grasp the magnitude of the senseless waste and needless deprivation it causes.




    www.youtube.com/watch?v=9e7RU5BClYc

    I see two challenges, elaborating a new system or an ecology of new system variations which by itself is very challenging (and testing them without being subject to military force), and the resistance by the people who benefit the most from the current ponzi scheme and hierarchic oligarchies, and who also have he greatest leverage in manipulating people(including manipulating people into supporting the bombing/invasion/regime change of an independent society).
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