lol wut
most of the euro zone debt is caused by high house prices?
Brilliant.. you cant make this stuff up hahah
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italy to fall
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lol wut
most of the euro zone debt is caused by high house prices?
Brilliant.. you cant make this stuff up hahah
i said, most of the world in general, not just europe.
what causes debt? people living beyond their means, things sold at too high of a price, caused by inequality, because the rich want to become richer, the poor, poorer..
for every countrys debt, someone has come good out of it and why is that?
what causes debt? people living beyond their means, things sold at too high of a price, caused by inequality, because the rich want to become richer, the poor, poorer..
for every countrys debt, someone has come good out of it and why is that?
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Let the eu fail thank god.
This.
I'd like to see another president introduce a debt free system, though that will probably lead to another assassination as it did with Kennedy, Jackson and Lincoln.
Caporegime
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That isn't the reason for ANY of this AT ALL. Personal debt isn't an issue, growth of the GDP is.
The world economy has always been based on one thing, growth. Its a ponzy scheme, its always been that way and will be till I dunno civil war and lots of death then starting over.
The ONLY way to afford the current pensioners, is by having a bigger work force than 20 years ago, the only way to afford the pensions of those on them now AND the people who will also be on pensions in 20 years, is to have an even bigger workforce.
These things have all come to a head because, rather than job growth, we've lost jobs, we've been replacing tax revenue generating jobs for 2-3 decades with public service jobs, this is a DOUBLE hit on tax income, it is the ENTIRE reason the government spending is out of control. The economic crisis hitting Italy right now is because they have so much debt, the people they are borrowing from are now only offering higher interest rates, which long term will wipe out Italy.
They were at 4% interest on borrowing, which led to 10% of their tax revenue going not on paying off debt, just on paying off the interest on the debt. Its since gone up to 7%, that means in just over 3 years they will be paying 20% of its tax revenue on interest payments, this is something they can't afford.
This is our problem huge debt, growing debt, huge deficit without a fast enough reduction. As our debt grows, OUR interest charges will increase, they will increase out of the range we can control and we'll get in trouble.
As country after country in the EU falls money they owe us won't be paid off, reducing our income, increasing the borrowing we need to do, etc, etc....... it gets worse and worse.
Governments bowing to every single whim, free education for everyone, free laptops, paying 10billion over the past 6-7 years to get kids to go to school......... when previously they went to school and weren't paid. What was it 6 billion on the ID scheme, which got scrapped, 10's of billions on IT schemes for various departments that are late, don't work, or get scrapped.
It's got nothing to do with inequality or personal spending, if growth continued(which if the governments invested in business growth rather than pushing people into the public sector) it probably would have, then all of that crap evens out.
An economy that isn't growing DOES NOT WORK in this system, our system can't worked with a balanced budget. The general idea is growth negates debt, you borrow 10million this year, you can't afford to pay it back, but in 10 years, 10million due to growth in the GDP becomes percentage wise a much smaller number and is easy to pay off. But you borrow 100million as you pay off the 10 million. Then 10 years later you can afford to pay off the 100million, but you borrow a billion.
This has always been the way, its a joke, it could never, ever continue forever.
The other problem with growth is, world population and job complexity. 50 years ago it took 10 guys a week to build one car, and they only lasted 10 years before you needed a new one. Today it takes one guy controlling 30 robots 2 hours to build a car, and it lasts 30 years.
Even with population growing, production capacity has increased faster than consumption, reliability has gone through the roof.
There is just less and less jobs, farmers use hydroponics and growlights to grow significantly more than they used to and we have for a long time PAID farmers to NOT produce stuff.
The only question is, how bad is it going to be when it goes bad, and how sensible will the world be........ Everyone might just sit in a room agree to write off all debt and start a fresh........ its very very unlikely to happen.
No more boom and bust......
World is in a hostile phase, all we need is uprising (in action around the world), fascism (how long before more job losses and immigration become troublesome), trade embargoes and you have the foundations for war.
World is in a hostile phase, all we need is uprising (in action around the world), fascism (how long before more job losses and immigration become troublesome), trade embargoes and you have the foundations for war.
i agree that the government dont spend our money wisely, looking at how much they spend on renewable energy alone, but they must get enough tax in every year? to pay for everything.
this country is still better off than a lot of other countrys even with its debt.
i still think this country has inequalities and the rest of the world or maybe just america has messed a lot of things up with its huge inequality problem.
i also think, though i could be wrong, again that with the rise of other countrys, china, india ect it has a massive effect on the uk and europe, more growth there, less here.
this country is still better off than a lot of other countrys even with its debt.
i still think this country has inequalities and the rest of the world or maybe just america has messed a lot of things up with its huge inequality problem.
i also think, though i could be wrong, again that with the rise of other countrys, china, india ect it has a massive effect on the uk and europe, more growth there, less here.
Forgive me if I'm reading this wrong as it's 5:33am and I've had a few glasses of wine...but are you saying what we need is fascism and trade embargoes so we can go to war?
Cheap Italian holidays here i come
There won't be any if it goes pear shaped.
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Would it not be slightly bothersome that a huge percentage of our trade is with EU countries?
Hyperinflation where setting out with the money to buy a loaf of bread means that by the time you actually get to the shop (and the probable huge queues there) it's not actually enough to buy you a slice of bread. That's one of the fairly obvious ones. General economic hardships and an inability to get necessities such as food are other potential although thankfully not hugely likely options.
Think Germany in the 1920's...
I live debt free these days thank God, but thats not much use when everything is falling apart.
I dont want to start any rumours but their steel imports are up 500% and despite all their heave manafacturing plants running 24/7 they have almost 0 exports....
3rd time lucky maybe?
This pretty much.
The problems are systemic.
Government interference is required to keep the system running, which also breaks the system.
Free market capitalism does not work, it simply leads to further corruption, price fixing & cartels.
To off-set this, governments need to wade in & attempt to balance the book (which also doesn't work).
It's a bit pyramid scam with each generation selling the next down the river, a debt based currency is one of the worst ideas ever conceived as you basically improve the standard of living for the current generation at the expense of the next.
Look at the older generation in the UK for example, got a free education, cheap house prices, lower poverty gap.
Each generation is getting screwed over more & more - I feel genuinely sorry for anybody with children - as the people who are leaving school today will be selling them down the river in another 20 years.
The funny thing is, people wonder why the youth of today are so messed up - it's going to get much worse.
elmarko1234 said:
They're messed up because they expect a certain standard of life that they can't afford. That's why we had rioters organising riots on smartphones in the name of the poor rising il against the rich.
Luxury items should be the first thing to go when you're skint but people seem unwilling to let them go so we borrow money. Personal debt is high because people can't accept their limits. Or they won't get better jobs. Either way, or culture is based on debt as much as our economic system. Is totally fubar