World Debt Hits $250 Trillion

[ANTI WP 19,828]

1 hour ago, Economy said:

Of that amount about $70 Trillion is Government debt with the US and Japan alone making up nearly half that amount

Where is the china ? 

 

Fun fact : Most of the money ( debt ) spent in building freeways throughout the country ( usa ) 

 

[Economy 52,837]

26 minutes ago, mgmpochhit said:

Not really

Uhhhhh yes it does

[Economy 52,837]

21 minutes ago, Santa Stefani said:

Unfortunately that “consequence” will affect just regular/poor people, because the rich ones just keep getting richer.

The rich getting richer i think is a seperate problem to this

 

governments overspend (and its generally on social programs for average people not programs for the rich) and as for the private debt its held in all kinds of sources from rich and regular people alike

 

to me low interest rates is a big causer of this problem. Its creating a credit monster that never should of existed in any segment, consumer debt, Corporate debt and Government debt alike

[whore 11,447]

It’s honestly really scary, any second our dollar could be worth nothing at all 

[Eighteen 5,430]

remember when republicans harped about gov't debt for 8 years and loook at them now! welcome to DC, baby! 

[Bio 23,538]

Capitalism is stupid y’all let’s go back to caves and sticks 

[GagaXCollection 7,723]

1 hour ago, BLACKOUTbritney said:

$250 trillion 

When will your planet!!! Earth is booked and busy! 

Earth outsold! Other planets should take notes!! 

[Economy 52,837]

1 hour ago, ANTI WP said:

Where is the china ? 

 

Fun fact : Most of the money ( debt ) spent in building freeways throughout the country ( usa ) 

 

I don’t understand what ur trying to say. I think u might have accidentally missed a word typing

 

Also China is a little over $5 Trillion

 

Japan has something like $11 Trillion

[weed 78,870]

I love how it doesn't even exist  we just agree it exists. That's a fking lot of money

[Ronk 14,930]

Is most if the world debt from printing new money?  Otherwise, every dollar owed would also be accounts receivable (an asset) to someone else, and world debt would be a wash, wouldn't it?  Just curious how things work.

[Economy 52,837]

1 minute ago, Ronk said:

Is most if the world debt from printing new money?  Otherwise, every dollar owed would also be accounts receivable (an asset) to someone else, and world debt would be a wash, wouldn't it?  Just curious how things work.

Printing money isnt debt tho

 

Anyway about $70 Trillion is Government debt. That means the other $180 Trillion is private debt like consumer debt and Corporate debt

 

printing money does have consequences like inflation but its a totally different issue

[Ronk 14,930]

4 minutes ago, Economy said:

Printing money isnt debt tho

 

Anyway about $70 Trillion is Government debt. That means the other $180 Trillion is private debt like consumer debt and Corporate debt

 

printing money does have consequences like inflation but its a totally different issue

Thanks.  I'm still confused, tho.  If I have a home mortgage the bank has expectation of eventually getting that money back and that's an asset on their books.  So why isn't that a wash?  Same for credit card debt, etc.   I understand that people and business owe money, but I don't understand why globally accounts receivable and accounts payable don't match.

[Economy 52,837]

11 minutes ago, Ronk said:

Thanks.  I'm still confused, tho.  If I have a home mortgage the bank has expectation of eventually getting that money back and that's an asset on their books.  So why isn't that a wash?  Same for credit card debt, etc.   I understand that people and business owe money, but I don't understand why globally accounts receivable and accounts payable don't match.

If i understand correctly your asking why an asset isnt subtracting from the debt?

 

if so... there is something called “net debt” or “net assets” (depending if your in positive or negative overall) which subtracts assets and debt from eqchother to give u ur overall positive or negative value

 

Im sure this is looking at gross debt (total debt regardless of assets)

 

Both matter in different ways. Net debt/net assets is more important to determine your worth and value as well as your solvensy (say as a last resort what assets could you sell?)

 

But gross debt matters too. Not all assets are easily liquidable, a bank for example like you mentioned cannot get all their owed money from mortgages all at once if they suddenly needed cash. They most they might be able to do for a quick cash out on those assets would be to sell those mortgage assets to another company but to sell it theyd have to sell them for less than the net worth (otherwise why would another bank bother buying them?) so theyd loose money and not do it unless its a last resort

 

assets can also include machinery, land, buildings etc a company needs to function that they wouldnt liquidate unless facing bankruptcy and forced to pay off creditors. Some assets may be your lively hood. They may be an asset but its not something u have the option to just sell or access as easily as some other assets like cash or stocks for example

 

so in some ways “net worth”, “net debt”, “net assets” are more important but in other cases it doesnt give an accurate picture of how well off a person or institution really is

 

so which debt measurement is more meaningful depends on what they are analizing. 

[TimisaMonster 31,073]

Just print more...boom...

[Ronk 14,930]

2 minutes ago, Economy said:

If i understand correctly your asking why an asset isnt subtracting from the debt?

 

if so... there is something called “net debt” or “net assets” (depending if your in positive or negative overall) which subtracts assets and debt from eqchother to give u ur overall positive or negative value

 

Im sure this is looking at gross debt (total debt regardless of assets)

 

Both matter in different ways. Net debt/net assets is more important to determine your worth and value as well as your solvensy (say as a last resort what assets could you sell?)

 

But gross debt matters too. Not assets are easily liquidable, a bank for example like you mentioned cannot get all their owed money from mortgages all at once if they suddenly needed cash. They most they might be able to do for a quick cash out on those assets would be to sell those mortgage assets to another company but to sell it theyd have to sell them for less than the net worth (otherwise why would another bank bother buying them?) so theyd loose money and not do it unless its a last resort

 

assets can also include machinery, land, buildings etc a company needs to function that they wouldnt liquidate unless facing bankruptcy and forced to pay off creditors

 

so in some ways “net worth”, “net debt”, “net assets” are more important but in other cases it doesnt give an accurate picture of how well off a person or institution really is

 

so which debt measurement is more meaningful depends on what they are analizing. 

Thanks for the explanation.  It just seems weird that the whole world can be in debt all at once.