Just remember that every year the World’s Economy has to grow enough to cover the interest rate payments in all outstanding debt (or money itself has to inflate away fast enough to offset it, and since interest rates are naturally set up to be above inflation - otherwise Financial Institutions would be losing money - that’s unlikely)
There are two ways to offset this:
- Reduce the amount of outstanding debt.
- Lower interest rates (which is what was done after the 2008 Crash, leading to the slowest recovery from a Crash in at least a century) so that for the same amount of debt there is less interest to pay.
Overall debt is increasing as per the article.
Interest rates are below historical average since what was done after 2008 which was supposed to be temporary wasn’t fully wound back, so there’s a lot less room there for central banks to do something about it.
Actually solving the underlying problems behind the 2008 Crash was pushed to the Future with some interest rate engineering, and it looks a lot like The Future Is Today, and this time around rather than just an over-indebtness plus Finance overextension problem, we seem to have over-indebtness, a massive Tech bubble (like in 2000) AND asset price bubbles in all manner of asset classes, from economically peripheral things like crypto to core things like housing.
I’ve been expecting a massive crash since I saw what passed for a “solution” back in 2009-12, but shit is turning up to be way worse than I expected due to all the additional resource malallocation and mispriceing in the Economy.
thanks for that comment
what did you study to be able to trace these?
Almost a decade in Investment Banking and I started reading a lot about Economics (from books, not random websites) after the 2008 Crash to try and understand what the fuck had happenned and what was being done about it.
That said, take what I wrote with a large pinch of salt, especially the first part which is an idea that I have of how that part of things work (based on Mathematics and Finance industry knowledge), not a proper peer reviewed theory from Economics.
I’ve pieced together a lot of knowledge I read about with understanding I gained from the inside of the Finance Industry (such as their way of valuing future money as well as things like fair value and fundamentals when it comes to markets), but the assembled thing as a whole is my own theory.
That said, my money is were my mouth is, and I’ve been highly invested in Gold (known as the ultimate safe asset) since 2012, and that has so far returned 500% on the original investment during that period, thus so far I seem to be at least partially right about the direction things are going (some kind over overall devaluation of traditional strong currencies and near-stagflation getting worse as the inherent disfunctionalities of the current value allocation system make it harder and harder for it to keep going as is), though that doesn’t mean I’m right on the Why.
Which planet do we owe the money to?
Mainly the poorer owe that to the richer.
Also the richer owe that to each other.
The last part could sorta be unwound in a more or less peaceful way (though very interventionist and the amounts involved are so large that we would see an explosion of corruption as the wealthy tried to extract gains from it by hook and by crook), but the first part would require a Revolution that tore down all existing ownership structures.
Future Earth of course. We’re paying that down for the next century like bad student loans.
ever wonder why why we stopped talking to Pluto?
We owe it to each other, or to the oligarchs.
Well, at least a small handful of people might make a few bucks.
No, those people already did. They have transferred the grift into houses, retirements, and change the course of the future for themselves and their families.
Everyone else gets to pick up the pieces for their deceit, exaggeration and stupidity.
Oh man, we owe the globe a lot these days 😅
This is great news. I mean as long as the lines keep going up right?
