Interest rate rise?

Thrugelmir

toomsie wrote: »

If debt is heading in the wrong direction, and so are we. Its been going this way for a very long time worldwide.

Debt in itself isn't an issue. More the nature of the lending. The impact on the lender if there's default. The growth of secondary shadow lending , i.e. non bank, such as P2P.

toomsie

Thrugelmir wrote: »

Debt in itself isn't an issue. More the nature of the lending. The impact on the lender if there's default. The growth of secondary shadow lending , i.e. non bank, such as P2P.

A part of me says this is true. But a part of me says if there is a fear that the debt cannot be paid back, bank or otherwise this can be serious.

We are already in a trade deficit with other countries. China is importing goods to the UK, but not much is going the other way only a promise to pay back in future when China is in a trade deficit with the UK.

After a default, we can only trade with China by giving something back of equal value or provide the goods and services ourselves.

It might be worth looking around asking do you have any friends, family or contacts that provide something that China wants. I sure do not know any my side. The richest guy I know provides HR for the public services. That doesn't provide anything to China. Half of my friends and family are economically inactive but consume Chinese good from the pound shop.

Type_45

Debt is what makes the world prosperous. If everyone around the world used actual money we'd barely be able to feed ourselves. It's credit which makes everything possible.