World Debt Hits $250 Trillion

[Economy 52,838]

14 minutes ago, Ronk said:

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

Well, in theory on a net basis... it should be roughly balanced as for every dollar someone lends, they are owed. Whatever someone owes someone has to be owed an equal amount

 

Of course in terms of “net debt” which includes assets, some assets fluctuate wildly in value which means the net debt and net assets will never be exactly balanced globally (for example you take out a mortgage for $400,000 but your home value goes up even as u barely started paying the mortgage), that would put your net worth in a positive regardless of the debt between you and bank

 

but excluding fluctuations in asset values, in terms of pure debt owed by someone vs what people/institutions are owed, the total net balance globally should be $0.

 

But its such a complicated web of money owed in so many directions and most of that debt not easily retrievable quickly that even tho on a net balance the total debt should be equal to total debt assets... the consequences are there regardless 

 

Because its not person A owing to person B and person B owing to person A and then we can cancel it out

 

If person A owes to person B but person C owes to person A... person A cannot cancel their debt with person B from the amount hes owed from person C until person C is actually able to pay him... so until he gets the owed money back, having that owed asset is useless 

 

So the fact that the global net debt balance (when factoring in what people are owed) is neutral... it does not matter...

 

 

the economic pressure is there regardless

[alextruper17 8,908]

2 hours ago, Taylucifer said:

let's keep this up y'all $300 trillion HEREWECOME

Love that gif 

[Ronk 14,930]

10 minutes ago, Economy said:

Well, in theory on a net basis... it should be roughly balanced as for every dollar someone lends, they are owed. Whatever someone owes someone has to be owed an equal amount

 

Of course in terms of “net debt” which includes assets, some assets fluctuate wildly in value which means the net debt and net assets will never be exactly balanced globally (for example you take out a mortgage for $400,000 but your home value goes up even as u barely started paying the mortgage), that would put your net worth in a positive regardless of the debt between you and bank

 

but excluding fluctuations in asset values, in terms of pure debt owed by someone vs what people/institutions are owed, the total net balance globally should be $0.

 

But its such a complicated web of money owed in so many directions and most of that debt not easily retrievable quickly that even tho on a net balance the total debt should be equal to total debt assets... the consequences are there regardless 

 

Because its not person A owing to person B and person B owing to person A and then we can cancel it out

 

If person A owes to person B but person C owes to person A... person A cannot cancel their debt with person B from the amount hes owed from person C until person C is actually able to pay him... so until he gets the owed money back, having that owed asset is useless 

 

So the fact that the global net debt balance (when factoring in what people are owed) is neutral... it does not matter...

 

 

the economic pressure is there regardless

I see.  Thanks.

I'll just pay the world debt out of pocket and everybody can breath easier.    Do I win for the most delulu statement ever made?

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2 hours ago, Economy said:

Uhhhhh yes it does

The system has worked like this for millennia. Or has it ever been a place in time where there were equality? So it does not matter at all.

[Taylucifer 5,249]

1 hour ago, alextruper17 said:

Love that gif 

taste

 

[Gagaism 12,471]

4 hours ago, Economy said:

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

*First of all, I’m sorry for my bad English 

So, I get your point and honestly I don’t know nothing about money and economy while you’re an expert at the subject.

One thing that I keep strong in my mind is politics corruption. I mean, I’m from a country that politicians are VERY corrupt and time after time we watch scandals about their “transactions”, talking about millions and millions. In this scenario I do really think that is so much money in hands of those people and we don’t have any real sense of how it works. From what I watch about politicians in my country, a portion of the overspend money is directed for their payments, for example, which is something just absurd.

Also, we know that politicians and businessmen/ppl have contact close enough and they have power enough to do what they want and we, workers, regular people don’t have access to absolutely nothing. I mean, can u imagine how much money they have spending on their own luxury or whatever and how this could be used to help people instead?

I mean, I don’t even know what else I can ask or put in here, I just can’t handle it 

edit: don’t get me wrong in case I’m talking some s**t eventually. Fell free to educate me, please.

[Economy 52,838]

5 hours ago, mgmpochhit said:

The system has worked like this for millennia. Or has it ever been a place in time where there were equality? So it does not matter at all.

I dont get how debt being an old thing makes it not matter tho

 

it has never reached staggerijg numbers like this

 

true the economy has never been perfect for the average person but theres been times it was exeptionally bad like the 1930s depression and times where it was better for peoples livelyhood

 

i dont get how it doesnt matter

[Economy 52,838]

3 hours ago, Santa Stefani said:

*First of all, I’m sorry for my bad English 

So, I get your point and honestly I don’t know nothing about money and economy while you’re an expert at the subject.

One thing that I keep strong in my mind is politics corruption. I mean, I’m from a country that politicians are VERY corrupt and time after time we watch scandals about their “transactions”, talking about millions and millions. In this scenario I do really think that is so much money in hands of those people and we don’t have any real sense of how it works. From what I watch about politicians in my country, a portion of the overspend money is directed for their payments, for example, which is something just absurd.

Also, we know that politicians and businessmen/ppl have contact close enough and they have power enough to do what they want and we, workers, regular people don’t have access to absolutely nothing. I mean, can u imagine how much money they have spending on their own luxury or whatever and how this could be used to help people instead?

I mean, I don’t even know what else I can ask or put in here, I just can’t handle it 

edit: don’t get me wrong in case I’m talking some s**t eventually. Fell free to educate me, please.

I mean i know theres badly spent money on themselves but it would still be a small fraction of this

 

most of this debt is not even Government debt

 

and most of the Government debt is held by Countries with a system that only allows limited corruption in spending for ones self (tho theres always the risk of some anywhere)

[gagaschickens 4]

@Economy the power that you have.. imagine being so iconic you have a tag named after you

[Chromaticunt 5,529]

Yaaas queen come through with those numbers.

[Helxig 45,330]

How the f.uck does this even work   that is a ridiculously large number, it might as well be made up.  This just goes to show that the value of money is just an invented concept

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14 hours ago, Economy said:

I dont get how debt being an old thing makes it not matter tho

 

it has never reached staggerijg numbers like this

 

true the economy has never been perfect for the average person but theres been times it was exeptionally bad like the 1930s depression and times where it was better for peoples livelyhood

 

i dont get how it doesnt matter

It's more of a philosophycal perspective I guess. I don't see anyone being more content because numbers change throughout time, even in recent times. It's literally always been the same. 

[Economy 52,838]

4 minutes ago, mgmpochhit said:

It's more of a philosophycal perspective I guess. I don't see anyone being more content because numbers change throughout time, even in recent times. It's literally always been the same. 

Im just saying this can have economic consequences that will affect ppls lives

 

big imbalances in the economy is usually what will trigger severe downturns (besides sudden shocks like a big natural disaster or an energy crisis etc)

 

the 1939s depression was caused by big imbalances and so was the 2008 crisis which was the worst downturn in the last 100 years excluding the depression

 

This is someonething worth worrying about i think

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3 hours ago, Economy said:

Im just saying this can have economic consequences that will affect ppls lives

 

big imbalances in the economy is usually what will trigger severe downturns (besides sudden shocks like a big natural disaster or an energy crisis etc)

 

the 1939s depression was caused by big imbalances and so was the 2008 crisis which was the worst downturn in the last 100 years excluding the depression

 

This is someonething worth worrying about i think

Then do something to change the socioeconomic system we live in. What do you do to make things better for others and yourself?

[Guest]

On 11/17/2019 at 7:39 PM, PartySick said:

Apparently, US debt spread between US citizens is something like a quarter of a million dollars per person  that might just be our government's debt though.

That most certainly is government debt because there’s no way in hell I owe anyone $250,000 & hell if I’m gonna be responsible for taking on anyone else’s debt but my own (which is zero cause I pay my bills babe)