who the **** does the world owe money to?

live2thewire

the world is in recession but i don't get it. money is man-made invention. its not fact like science or maths. we could easily tommorow decide that the ammount of cotton wool we have is what determines wealth like back in the day when if ye had a few pigs ye were seen as a big cheese.

javaboy

Shylock. But don't worry, a crossdresser will come along at the last minute and save us.

Captain-America

This isn't Brian Cowen posting is it?

Aldebaran

I don't have your money....it's in Bill's house and..and Fred's house

Disease Ridden

I've seen this question asked a few times before online and I think the answer usually involves China

Captain-America

Aldebaran wrote: »

I don't have your money....it's in Bill's house and..and Fred's house

What are you doing with my money Bill?!

live2thewire

Aldebaran wrote: »

I don't have your money....it's in Bill's house and..and Fred's house

is that an ol' gill quote?

NewApproach

Around a year ago china owned one trillion dollars of US debt. God knows what that figure is now. But basically the banks can create electronic money, it is not necessarily backed by cash, rather the assets it is loaned for, which as we know are worth less than the loan amount...

Senna

The money is already spent, the world went mad on cheap credit and now there's a man at the door asking for it back and he wont lend anymore till its all paid back.

Slippers

When a bank makes a loan, that's brand new money that didn't exist before the loan. When a loan is paid off or defaulted on that money is cancelled out. So, there is always more debt than money. Crazy but true.

Link 1
Link 2

The alternative

Shacklebolt

Aldebaran wrote: »

I don't have your money....it's in Bill's house and..and Fred's house

Hey whattaya doing with my money in your house Fred?:mad:

markok84

Watch all 5 episodes of this "money as debt." It will answer all.

https://www.youtube.com/watch?v=mIIAvdJvCes

kumate_champ07

theyve had us by the balls for a while now but remember, theres more of us then them!

Pal

the World ( Government and Banks) owe the money to the LENDERS.

The LENDERS are mostly banks but can be governments too.

There are some other little LENDERS but they don't really matter.

Goverments borrow more all the time to pay back their rising interest bill.

They print their own money to do this.

I kid you not !

Spore

And the nobel prize for economics goes to....

Caoimhín

Has a lot to do with the notion of cash being backed by gold, which the Brits and US abandoned in the 70's.

Basically the money (cash) didnt really exist in the first place.

WindSock

The world owes money to those whom they borrowed from to drive around in swankey new cars and second homes they could never realistically afford. Now everyone else has to pay for your debt.

Capt'n Midnight

Aldebaran wrote: »

I don't have your money....it's in Bill's house and..and Fred's house

Time to raise a mob methinks

Bring your torches and pitchforks, we'll meet at Fred's around eightish.



Seriously, the banks lent out lots of money because they make a percentage. The lent out far more then they were supposed to because they didn't do the full checks. Since everyone had access to lots of money the prices of houses and stuff went up. So some people lied about their financial status to get bigger loans for basic accomodation. The speculators took a lot of the profit , the government took up to 45% of the cost of a house in tax and their buddies the builders made a killing too. We couldn't save because we had to pay off the debt, and they didn't save because they didn't care or were incompetant instead they bought our votes.

We've been here before many times on a smaller scale remember Charles Haughey ?
If you owe the bank a hundred thousand, it’s your problem. If you owe the bank a hundred million, it’s the banks problem.
So much money is owed to the banks that they have to get the best of a bad lot, half a loaf is better than no bread etc. The fact that the banks and the government created our vastly increased exposure doesn't help us economically. We have to bail them out because otherwise we all go down.

Until our system punishes people for excessive risk taking we will continue to have this. At the very least we should investigate the level of compliance of banks with legalities and their own internal rules. We are talking CAB levels of investigation into private individuals.

Or is this too severe ? We'd only save one life for every extra million we budget for investment in vaccines / health care, road safety and all that other stuff that benefits all sectors of society.

Caoimhín

WindSock wrote: »

The world owes money to those whom they borrowed from to drive around in swankey new cars and second homes they could never realistically afford. Now everyone else has to pay for your debt.

Thats quite accurate when applied to Ireland. However, i think the situation on the ground in parts of Africa etc were very different.

hunter164

Spore wrote: »

And the nobel prize for economics goes to....

Brian Cowen

ScumLord

I think the economy and world banks are a waste of time, abandon them all.

Sam Vimes

live2thewire wrote: »

is that an ol' gill quote?

It's Gill quoting George Bailey in It's a Wonderful Life