poppet2 Posted October 28, 2011 Share Posted October 28, 2011 Since we appear to be adept to printing money lately, why doesn't the government just print money to pay off all our debts abroad? It took 60 years to finish paying for Marshall aid. Link to comment Share on other sites More sharing options...
I1L2T3 Posted October 28, 2011 Share Posted October 28, 2011 And to be realistic...in 91 years time it will probably be someone elses problem See my signature. Link to comment Share on other sites More sharing options...
I1L2T3 Posted October 28, 2011 Share Posted October 28, 2011 Since we appear to be adept to printing money lately, why doesn't the government just print money to pay off all our debts abroad? Because it would most likely lead to hyperinflation. Even if they were allowed to even try it. Link to comment Share on other sites More sharing options...
VillageIdiot Posted October 28, 2011 Share Posted October 28, 2011 Manageable debt is not a bad thing per-SE The level of debt this country finds itself in is neither manageable or clever... Link to comment Share on other sites More sharing options...
XXTickerXX Posted October 28, 2011 Share Posted October 28, 2011 They were probably not always in debt.The banks had to be invented first(probably by the Templar knights).However Britain is still paying off debts that predate the Napoleonic wars(its cheaper than buying the bonds back) so they have been in debt quite a while.They paid off World War 2 debts in 2006-7 i think. Link to comment Share on other sites More sharing options...
ANGELFIRE1 Posted October 28, 2011 Share Posted October 28, 2011 In debt to the tune of 979 billion, and the LIEbour party want to borrow more. Don't know if we have always been in debt, but if LIEbour ever get their way, we certainly will be. Regards Angel. Link to comment Share on other sites More sharing options...
Peas Maker Posted October 29, 2011 Author Share Posted October 29, 2011 In debt to the tune of 979 billion, and the LIEbour party want to borrow more. Don't know if we have always been in debt, but if LIEbour ever get their way, we certainly will be. Regards Angel. Yes we have always been in debt which means.... We have always been working for the banks , Link to comment Share on other sites More sharing options...
HeadingNorth Posted October 29, 2011 Share Posted October 29, 2011 Yes we have always been in debt which means.... We have always been working for the banks , The nation being in debt does not mean that individual people have to work for the banks. You're confusing two different things. Link to comment Share on other sites More sharing options...
*_ash_* Posted October 29, 2011 Share Posted October 29, 2011 The whole economy is built on debt You know, I tend to disagree with everything you ever post Mecky. Not quite as much as titanic and wednesday, but not far off. But as sweeping statements go, I would agree with this. I'm not sure (or doubt) for the same reasons as you though - On the topic though, and my understanding, which I'll happy read disagreements to: my understanding of debt, or the start of it in this country and worldwide... comes from originally placing 'gold' in deposits (or banks), then people borrowing against the 'gold' with an interest rate. Fast-forward - Over a few hundred years the 'gold' becomes insignificant, and the ability for people to pay back money (or guarantees of repayments) becomes more significant than the ability of the bank to pay out the original 'gold'. Since this can never be repaid (unless someone can invent a new 'gold') then the original deposit can never be met (paid back) - hence devaluation of printed money, because more money is in circulation to meet the needs of the loans, than is entrusted with 'gold'. To combat a complete breakdown of monetary exchanges, and a complete devaluation of all the loans in place, then inflation takes place. This devaluation of all the money in circulation creates 'national debt'. If everyone stopped borrowing money, and pays all their debts, then the whole economy would collapse, because there wouldn't be a way for more money to be created without printing it. Link to comment Share on other sites More sharing options...
I1L2T3 Posted October 29, 2011 Share Posted October 29, 2011 You know, I tend to disagree with everything you ever post Mecky. Not quite as much as titanic and wednesday, but not far off. But as sweeping statements go, I would agree with this. I'm not sure (or doubt) for the same reasons as you though - On the topic though, and my understanding, which I'll happy read disagreements to: my understanding of debt, or the start of it in this country and worldwide... comes from originally placing 'gold' in deposits (or banks), then people borrowing against the 'gold' with an interest rate. Fast-forward - Over a few hundred years the 'gold' becomes insignificant, and the ability for people to pay back money (or guarantees of repayments) becomes more significant than the ability of the bank to pay out the original 'gold'. Since this can never be repaid (unless someone can invent a new 'gold') then the original deposit can never be met (paid back) - hence devaluation of printed money, because more money is in circulation to meet the needs of the loans, than is entrusted with 'gold'. To combat a complete breakdown of monetary exchanges, and a complete devaluation of all the loans in place, then inflation takes place. This devaluation of all the money in circulation creates 'national debt'. If everyone stopped borrowing money, and pays all their debts, then the whole economy would collapse, because there wouldn't be a way for more money to be created without printing it. Look up 'fiat money'. It's all built on confidence, nothing else. In that sense you are right it is detached from anything physical backing it up, it can't be converted into anything tangible. At the end of the day the reason for national debt should be clear and simple. The government has spent more than it takes in tax receipts. For decades. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.