Global Government Debt Is Actually Triple What We Thought, Thanks to Pensions

originally posted by: ScepticScot

originally posted by: lordcomac
It grinds my gears when people think the debt can be paid.

The fact that the money was conjured out out of thin air, and loaned at interest... by definition there's more debt than money.

Shut it down while we still have the chance to get through this alive.

Yes money is conjured out of thin air (or more accurately typed on a computer screen). Therefore by definition it can be repaid.

It's made from nothing, and then required to be paid back *with interest* to the creator.

Lets make a new fiat currency- call 'em comac bucks.

If I print up $500 comac bucks and lend them to you at 10% interest (nice and simple...) You now have to pay me back $550 comac bucks.

The problem is that only $500 exist in the first place, which means you'd need to pay me the 500, and then I'd have to be inclined to give you another 50 for services rendered unto me just so you could pay back the initial loan.

Expand that nonsense to a few billion people through a complex system of fractional reserve lending and middleman banksters, let it cook for a century, and you've got the mess we're in today.
there is more debt worldwide than there is currency, period. That's how it works- it's inherently impossible for ALL debt to be paid off, and a "national" debt is just that debt accumulating in one place rather than another.

Divide the debt of the nation by its people today and you've got some $70,000 in national debt for every man, woman, and child.

I'd bet my next meal that the average net worth of the US population is less than that, given how much debt everyone carries around.

Money is debt, plus interest. It never should have been allowed to get this far, and it can't be fixed- only wiped clean. Problem is, the people who made the system now have money- while the rest of us don't. That makes them powerful, and us weak. They're holding all of the keys, and guarding all of the doors. They run our courts, governments, and local citizen harassment squads. They choose what people do for a "living", they decide the path of humanity.
They chose wrong, and we're all going to pay the price when it comes unglued.

a reply to: lordcomac
You forgetting two key points. One: new money is injected into the system by the government. Two banks don't just take the interest and stick it into a swimming pool Scrooge McDuck style.
All money is debt, but there are different kinds of debt and different kinds of money. If something is a liability it must also have a corresponding assert.
You are taking the fact there is more private debt ( and the corresponding asset) than initial government money (cash and reserve accounts) and arriving at the erroneous conclusion that this means the debt cant be paid.

originally posted by: WeRpeons
a reply to: ScepticScot

Government Debt = Peoples Savings. What you are proposing is that we should wipe out peoples savings and pensions.

According to the current rules. A new system can be designed to exclude savings and pensions. The entire system would be revamped. Pensions and savings don't have to be touched. Consider it free money for those who have them now to minimize the negative effect on a country's citizen's. We either do a reset or we wait until we create a hole so big we can't crawl out of. We need to look at this through a whole new perspective.

Not sure I am following what you mean by a "reset", could you possibly elaborate as think I may be disagreeing more with the mechanism than the aim of what you are saying.

A reset can only happen if there is a big enough war, like WW 2 'reset' the German economy, which, by most accounts has been doing quite nicely ever since, what with all the new machinery brought in after that war, I remember working in a machine shop in the 1960's where one huge pedestal drill was made before the first world war! just no money about to by a new one! yes, I think Germany won round 2, in a strange way.

a reply to: ScepticScot

Maybe I shouldn't have said reset, because that indicates resetting the same exact system we already have. I just think the entire monetary system and world debt problem needs to be restructured, and world debt forgiveness implemented so the entire world can start a new system without any debt.

If we don't relieve debt around the world in some way, we will eventually see the entire economy and monetary system crash. Everything has an end, so does the world's monetary system. I think if the world gathered the brightest financial and economic planners together to devise a system that would eliminate debt, yet provide a system where everyone had a livable wage, access to healthcare, and prices on goods and services are kept in check.

a reply to: ScepticScot

how would it pay it back instantly?