99.9% of debt in the world will be defaulted on. Only 0.1% is paid back.

AG47

Global debt increased at the fastest rate ever in history at the beginning of 2018. In just one quarter, total global debt jumped by more than $8 trillion. That is quite surprising as total world debt rose by $22 trillion for the full year in 2017. Thus, the increase in global debt last year averaged $5.5 trillion each quarter.

Estimations are global debt for this year 2018 will be near to $30 trillion when all the numbers from around the world come in.

This is impossible to be paid back. The only way to pay the interest is by borrowing more, and that has interest on it, and so on.

This is why only 0.1% of debt in the world is actually paid off. It’s very unfair for those who actually pay off their debts when 99.9% of debt will not be paid off.

AG47

Actually global debt must have jumped by $9.5 trillion to $248.5 trillion during the first quarter of 2018 and then dropped $1.5 trillion in Q2. Thus, the IIF must be revising their figures each quarter.

michaels

Could you lend me a tenner, please?

AG47

michaels wrote: »

Could you lend me a tenner, please?

Yep, that would be currency already created, most of that $250 Trillion is just created and added to the already existing currency supply, with interest owing on it.

Where does the interest come from? It has to be created out of thin air and added to the supply, with interest owing on it, and so on.

Hense 99.999999999% of all debt can never be paid back.

lisyloo

It has to be created out of thin air

Mortgages (for example) are paid from people's future earnings.
Why do you describe that as thin air?
The vast majority of the time they do work and pay it back.

HAMISH_MCTAVISH

AG47 wrote: »

Hense 99.999999999% of all debt can never be paid back.

AG47

lisyloo wrote: »

Mortgages (for example) are paid from people's future earnings.
Why do you describe that as thin air?
The vast majority of the time they do work and pay it back.

Yes mortgages make up part of the 0.1% of the $250 trillion new debt every year.

0.1% of 250 trillion is still 250000000000

Jackmydad

michaels wrote: »

Could you lend me a tenner, please?

Not if you're only planning on paying back 0.1% I can't!

GreatApe

What about the assets?

Something like 500 million homes will be built this decade, and then the same again in other infrastructure

People (mostly lefties) are too blind to see that everything is improving at an amazing rate. Things are not perfect but they are getting there and as quickly as anyone could realistically hope

GreatApe

lisyloo wrote: »

Mortgages (for example) are paid from people's future earnings.
Why do you describe that as thin air?
The vast majority of the time they do work and pay it back.

Even if it is not paid back the world is and continues to move in the right direction

Post crash even the wise on here like Hamish pointed to ireland and said what a silly bubble. At the time I kept saying it was not a bubble and fast forward 10 years and the story is about the irish housing crisis (ie shortage)

Globally it is difficult to miss allocate capital because the world needs so much more of almost everything

For all the tin foil hatters they should just take a step back and look down on earth and the little humans and see what they are doing. They are building the homes they need and the infrastructure they need. It doesnt matter much what tally system they use to account for these things once the infrastructure is built it is there and it improves lives. The world is building half a billion homes a decade and then the same again in other infrastructure things are going very well for the human race right now. Nothing can be perfect but things are going in the right direction at a good pace

AG47

GreatApe wrote: »

Even if it is not paid back the world is and continues to move in the right direction

Post crash even the wise on here like Hamish pointed to ireland and said what a silly bubble. At the time I kept saying it was not a bubble and fast forward 10 years and the story is about the irish housing crisis (ie shortage)

Globally it is difficult to miss allocate capital because the world needs so much more of almost everything

For all the tin foil hatters they should just take a step back and look down on earth and the little humans and see what they are doing. They are building the homes they need and the infrastructure they need. It doesnt matter much what tally system they use to account for these things once the infrastructure is built it is there and it improves lives. The world is building half a billion homes a decade and then the same again in other infrastructure things are going very well for the human race right now. Nothing can be perfect but things are going in the right direction at a good pace

Every single country will default on their debt, they have done and will do.

Is that not very unfair for the hard working people who actually pay down debt?

Is it not unfair that some can create currency out of thin air and add it to supply, or choke to just default on debt?

Some people here seem to justify defaulting on fiat currency units that just slang into existence and then when you default it’s just a case of taking them out of the supply just as if they were never added int he first place.

The system has been messed up since 1971.