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

Arklight

The working of the fractional reserve system does bear repeating because although it's not a difficult thing to understand, most people know nothing about it.

Common sense does seem to indicate having a debt based system of wealth creation is unustainable in the long run.

Thrugelmir

GreatApe wrote: »

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)

Only where the jobs are. No shortage in rural Eire. Numerous unfinished projects litter the landscape as well.

Arklight

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

Thank goodness we have people like you to unquestioningly accept everything is fine and tell us we should dare not challenge our betters.

That's the bedrock of all positive change.

AG47

Before 1971 the world was on a monetary precious metal backed international monetary system.

On August 15 1971 the world was told we were going onto a "new international" monetary system, and the most important point was temporarily.

We were told almost 50 years ago that it was to be temporary.

The entire world is still using this temporary new international monetary system.

Since 1971, this new temporary international system means every unit of currency brought into existence has interest owing on it. New currency needs to be created with more interest on it and so on.

His 99.9% can never be paid back.

Jonbvn

AG47 wrote: »

Before 1971 the world was on a monetary precious metal backed international monetary system.

On August 15 1971 the world was told we were going onto a "new international" monetary system, and the most important point was temporarily.

We were told almost 50 years ago that it was to be temporary.

The entire world is still using this temporary new international monetary system.

Since 1971, this new temporary international system means every unit of currency brought into existence has interest owing on it. New currency needs to be created with more interest on it and so on.

His 99.9% can never be paid back.

So what's your angle. Is it gold or crypto.:p

Herzlos

Is that 0.1% paid back the capital or interest? Or rather, are lenders of the other 99.9% losing money?



For instance, take a BrightHouse sofa, at 50% APR. At some point the buyer will have paid BH the value of the sofa (ignoring it being overpriced to begin with) + costs, but still has a long way to go to clear the balance. If they then default, does that count as debt that's not paid back?

The-Joker

I would contend that it is far less than 0.1% is ever paid back.

Personal debt in the world is far less than 0.01% of soverign debt.

but the big picture is that every single unit of fiat currency created and added to the supply since 1971 is debt, and 99.999999999% of that will never be paid back.

Look at Trump and people like that, they get wealthy by defaulting on debt.

He is taking the same principle to the American money supply, I mean Obama only doubled it in his time, Trip is on the way to out default Obama in a big way.

Yes it is very unfair and not needed to pay back debt since 1971.

michaels

Jackmydad wrote: »

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

Rumbled

Malthusian

This is a variant on this old delusion: Let's imagine a man leaves university at 20 with a £30,000 student debt. 10 years later, he has progressed in his career, saved a deposit and buys a house with a £200,000 mortgage. Another 10 years later, he has increased his salary still further and has a family with two kids, so he upgrades to a bigger house with a £400,000 mortgage.

Most people would say this man has done well in his life. According to the tin foil hat brigade, this man is in an unsustainable debt spiral and bankruptcy is inevitable. The fact that his higher earnings can support a higher level of debt and that he has assets in excess of his debt is irrelevant to them.

Global debt is nil and always will be. Who does the globe owe this debt to? The Martians? Every debt on earth is an asset to somebody else who is also on Earth, which means that globally, all debt nets off.

The-Joker wrote: »

Look at Trump and people like that, they get wealthy by defaulting on debt.

Point of information: Trump got wealthy by inheriting a billion-dollar fortune from his Daddy. Despite blowing billions of it on rubbish investments and businesses, he inherited so much from Daddy that he still has billions left.

AG47

Malthusian wrote: »

This is a variant on this old delusion: Let's imagine a man leaves university at 20 with a £30,000 student debt. 10 years later, he has progressed in his career, saved a deposit and buys a house with a £200,000 mortgage. Another 10 years later, he has increased his salary still further and has a family with two kids, so he upgrades to a bigger house with a £400,000 mortgage.

Most people would say this man has done well in his life. According to the tin foil hat brigade, this man is in an unsustainable debt spiral and bankruptcy is inevitable. The fact that his higher earnings can support a higher level of debt and that he has assets in excess of his debt is irrelevant to them.

Global debt is nil and always will be. Who does the globe owe this debt to? The Martians? Every debt on earth is an asset to somebody else who is also on Earth, which means that globally, all debt nets off.



Point of information: Trump got wealthy by inheriting a billion-dollar fortune from his Daddy. Despite blowing billions of it on rubbish investments and businesses, he inherited so much from Daddy that he still has billions left.

Trump defaulted on billions, as well as inheranting billions.

Anyway that bloke in you illustration did pay his debt off, so he is part of the 0.1% of debt that doesn’t get defaulted.

Most of the debt in the world is sovereign debt and the big banks debt, this is the 99.9% of debt that is defaulted on.