I1L2T3 Posted October 30, 2011 Share Posted October 30, 2011 If all the European countries are in debt, who are they in debt to? Who is America in debt to? Who is lending all this money to bail out countries like Greece? Countries are in debt to other countries, insurance companies, pension funds, banks, hedge funds, their own citizens etc... They borrow from the same places. If nobody will lend basically authorities will 'print' more money by pushing a few buttons on a computer, more money just like magic. Link to comment Share on other sites More sharing options...
Bloomdido Posted October 30, 2011 Author Share Posted October 30, 2011 It’s a tad complicated but what they do is travel into the future and borrow it off our grandchildren. That's what worries me. We have been brainwashed int thinking that debt is good. I am hearing adverts on the radio telling parents to get a store card and give their kids the christmas they deserve. Is that what Countries do, borrow money to keep the population thinking that Daddy hasn't lost his job? Link to comment Share on other sites More sharing options...
Grandad.Malky Posted October 30, 2011 Share Posted October 30, 2011 If nobody will lend basically authorities will 'print' more money by pushing a few buttons on a computer, more money just like magic. And we all know what happens in countries that print money “just like magic” ......... . we all become millionaires Link to comment Share on other sites More sharing options...
I1L2T3 Posted October 30, 2011 Share Posted October 30, 2011 That's what worries me. We have been brainwashed int thinking that debt is good. I am hearing adverts on the radio telling parents to get a store card and give their kids the christmas they deserve. Is that what Countries do, borrow money to keep the population thinking that Daddy hasn't lost his job? It's more complicated like that. As convenient as it might seem for some people you can't compare household finances with a nation's finances. Almost all countries have a permanent national debt. Which does mean that at some point they've spent more than they were getting in. Seems to be the done thing. Link to comment Share on other sites More sharing options...
I1L2T3 Posted October 30, 2011 Share Posted October 30, 2011 And we all know what happens in countries that print money “just like magic” ......... . we all become millionaires Yep, that's on the way. Link to comment Share on other sites More sharing options...
MrSmith Posted October 30, 2011 Share Posted October 30, 2011 That's what worries me. We have been brainwashed int thinking that debt is good. I am hearing adverts on the radio telling parents to get a store card and give their kids the christmas they deserve. Is that what Countries do, borrow money to keep the population thinking that Daddy hasn't lost his job? Not me debt is bad, but OK if used in moderation. Link to comment Share on other sites More sharing options...
I1L2T3 Posted October 30, 2011 Share Posted October 30, 2011 Not me debt is bad, but OK if used in moderation. Agree with that. For example UK government debt issued as gilts is bought by pension funds. This provides a stable and guaranteed long-term income that forms the core of many pension funds. Link to comment Share on other sites More sharing options...
Bloomdido Posted October 30, 2011 Author Share Posted October 30, 2011 Bonds and Blue Chips are one thing but banks make their money from borrowing. Link to comment Share on other sites More sharing options...
WeX Posted October 31, 2011 Share Posted October 31, 2011 If all the European countries are in debt, who are they in debt to? Who is America in debt to? Who is lending all this money to bail out countries like Greece? You just need to follow it. Where are all our products produced these days? These countries and their banks are lending back the money we paid them. Round and round it goes until its not longer economical to borrow. This is where we almost are now. Link to comment Share on other sites More sharing options...
Mecky Posted October 31, 2011 Share Posted October 31, 2011 You just need to follow it. Where are all our products produced these days? These countries and their banks are lending back the money we paid them. Round and round it goes until its not longer economical to borrow. This is where we almost are now. I suppose you'd just start a war and kill everyone Link to comment Share on other sites More sharing options...
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