To "Shaun" you are wrong. It is possible for the world governments to
pay off their debt. We almost had our debt paid off in the 1950s.
It is mathematically impossible to pay off the debt in the world. If we changed
our monetary system we could do it easily.
To much debt is when the interest payments cannot be paid. Today The interest
on the national debt is more than the cost to fund the military.
"This is modern capitalism, a gigantic pile of commercial paper. Capitalism
may well destroy itself."And here lies the boogey man, cloaked
in a shroud of conservative neo liberal rhetoric. How many times do we have to
make the point that money flowing to owners is not first of all made by any act
of value, and secondly not being returned to the productive process.To see what a disaster this is one need look no further than the current
government shutdown. Hundreds of thousands of people with truly "middle
class" jobs can't go without one paycheck. Food banks are set up, for
people with truly enviable jobs that miss one paycheck. I'm
sure personal decisions play a role but this is a systemic failure staring us
right in the face. Modern capitalism has completely failed the workers.
Great article. Everything will start hitting the fan in ten years.
Medicare/social security instability are going to cause it. The only thing that
will make change is if seniors don't recieve their social security checks,
but by then the only option will be to dramatically increase taxes from their
historic low. President Trump had indicated this isn't his problem, he will
be gone by they time the bill is due.
In a nation of over-priced everything, there isn't much evidence of the
discipline to self-govern and self-regulate on ANY horizon. Self-discipline is
the key, right up to ALL CEOs, presidents and other government leaders, but it
starts at the grass-roots level.
Of course debt = credit. Like Keynes said, we could just as easily call the
national debt the national credit. So I think you may exaggerate the dangers of
global debt (though there is danger). But derivatives are another matter,
Warren Buffett calls them "tools of mass destruction."
One of the many reasons I could never get elected to public office is I want to
cut spending AND raise taxes to get the deficit under control and reduce the
debt. The deficit and debt are both embarrassing and frightening and no elected
official or political party has shown the courage to do something about them.
It's time to quit kicking the can down the road and make hard
decisions to prevent a future financial catastrophe.
"The latest report from the Institute of International Finance says the
world’s total debt — government, corporate and household —
...is 318 percent of the world’s gross domestic product, or more than
three times the world’s total economic output."But you are
looking at only a part of the puzzle. Consider:The size of the
derivative market is more than TEN TIMES that of the total world gross domestic
product (GDP). These strange financial creatures were a big part of the 2008
collapse. This is modern capitalism, a gigantic pile of commercial paper.
Capitalism may well destroy itself.