Removing Global Debt

[BEDROCK]

Well, can't they just write it all off, I mean, trillions upon trillions in global debt, they will never, ever pay it off, ever!

 

So, the only way we can remove the debt is to either write it all off, or, begin a new global currency, runs and hides...

[barleycorn]

Well, can't they just write it all off, I mean, trillions upon trillions in global debt, they will never, ever pay it off, ever!

 

So, the only way we can remove the debt is to either write it all off, or, begin a new global currency, runs and hides...

 

Say we do that then who is going to replace the money in my pension fund?

 

jb

[Jeffrey Shaw]

There's not really any such thing as 'Global Debt'.

Some countries borrow but fail to repay.

Creditor countries are entitled to feel aggrieved.

[Cyclone]

Well, can't they just write it all off, I mean, trillions upon trillions in global debt, they will never, ever pay it off, ever!

 

So, the only way we can remove the debt is to either write it all off, or, begin a new global currency, runs and hides...

 

Sure, you could just write it all off.

 

But then nobody would ever want to lend money again because the precedent is there to just write it off.

 

---------- Post added 20-03-2013 at 14:59 ----------

 

There's not really any such thing as 'Global Debt'.

Some countries borrow but fail to repay.

Creditor countries are entitled to feel aggrieved.

 

Do countries lend? Or is it business that lends? Pension funds as mentioned previously buy government bonds for example...

[maxmaximus]

Not sure about this but isn’t most of the money borrowed from the future. In other words the banks print money into existence useing our future work as collateral.

[Jeffrey Shaw]

Do countries lend? Or is it business that lends? Pension funds as mentioned previously buy government bonds for example...

Countries do- hence the multinational organisations (World Bank, EU, etc.) which largely fund the 'Third World.'

[Vague_Boy]

Do countries lend? Or is it business that lends? Pension funds as mentioned previously buy government bonds for example...

 

China as a nation owns a lot of the United State's debt, along with several other nations:

 

As of January 2011, foreigners owned $4.45 trillion of U.S. debt, or approximately 47% of the debt held by the public of $9.49 trillion and 32% of the total debt of $14.1 trillion. The largest holders were the central banks of China, Japan, Brazil, Taiwan, United Kingdom, Switzerland and Russia.

LINK

 

However, of late, most of the U.S. debt has been bought by the Federal Reserve using money created out of thin air.

 

The Fed Is Buying 61% of U.S. Debt

 

 

The OP is quite correct, the debt cannot be repaid:

It Is Now Mathematically Impossible To Pay Off The U.S. National Debt

 

However, a lot of wealthy companies in positions of influence would lose a lot of cash if the debt were simply written off, hence we stumble and bumble along the path to complete fiscal destruction.

 

Iceland took the route of letting the banks go bust. They had a tough couple of years but they're doing OK now:

 

Iceland economy grows at fastest pace in four years

 

When money can be debased as a matter of routine or created out of thin air to "solve" problems, the value of money as a store of value is eroded to zero.

 

Money becomes worth less and worth less, until it ultimately becomes worthless.