Question - Where's the money?

[Ivor Bigun]

How come everyone is in Debt - People, companies, governments.
EVERYONE AND EVERYTHING IS IN DEBT!!!!!
Have you ever wondered how can that be? who are we in debt to?
The answer is quite amazing really - However, my take on it is that we are all in debt to ourselves. One man's mortgage (promise to pay) is another man's pension.
The really amazing part is that the banking system gets a slice, no matter what happens - and so they increase their share of the "value of the world".

However there is only a finite "value of the world" in the absolute currency of the item (e.g. 1 bridge = 1 bridge, 10 houses = 10 houses)

Of course, the world value increases if we build more things - like houses etc.
But, IMO, we have reached a point where the banking system (on paper), now has the legal rights to more "promises of world value" than there is "World value to give".

Where we go from here is the most interesting event for mankind.
It is the whole basis from which Gordon Brown stands.

If vested interests e.g. media and banking are against GB, then maybe we should try and understand why.

It may be that GB is more of a hero than you realise.

[Doggy Styles]

Nobody has got it. It's as if you've piled up most of your belongings in a heap and set fire to them. The 'money' is destroyed.

Effectively all that debt - to pay for bank bailouts, public sector pensions, mortgages, credit cards - has to come out of private sector savings, pensions and future earnings.

[BrilloPad]

One man's mortgage (promise to pay) is another man's pension.

But banking is a confidence trick. They lend far more than they have on deposit : on the assumption not everyone will ask for it at once.

[Doggy Styles]

But banking is a confidence trick. They lend far more than they have on deposit : on the assumption not everyone will ask for it at once.

That's only been true since Brown started interfering.

Before Brown, banks had similar amounts on deposit and lent out. What they obviously lacked was the liquidity to pay everyone at once.

But that wasn't really a confidence trick, because everyone accepts that's how banks were supposed to work. I save £100 and earn interest because the bank lends it back out to someone else at a higher rate.

[Paddy]

That's only been true since Brown started interfering.

Before Brown, banks had similar amounts on deposit and lent out. What they obviously lacked was the liquidity to pay everyone at once.

But that wasn't really a confidence trick, because everyone accepts that's how banks were supposed to work. I save £100 and earn interest because the bank lends it back out to someone else at a higher rate.

The problem was your £100 was used the pay the interest for other investors who believed like you the money was in the bank. The banks were relying on new deposits to pay interest. Re reason why there is a shortage of money is because most of the money lent out did not exist.

[Doggy Styles]

The problem was your £100 was used the pay the interest for other investors who believed like you the money was in the bank. The banks were relying on new deposits to pay interest. Re reason why there is a shortage of money is because most of the money lent out did not exist.

And as I said, that is a recent development over the past 10 years, due to the removal of proper monitoring of the banks.

[DiscoStu]

DimPrawn and threaded have got it all.

HTH

[Cyberman]

If anybody is massively in debt and cannot finance repayments they have only themselves to blame. Personally, I have my lowest debt levels for years, achieved by living within my means.

[Paddy]

If anybody is massively in debt and cannot finance repayments they have only themselves to blame. Personally, I have my lowest debt levels for years, achieved by living within my means.

Loans, overdrafts and mortgages are payable on demand. As the banks run dry they are calling in loans particularly business loans even though the borrower has paid on time and regularly.

[KentPhilip]

Its in China and Japan.

Oh and I've got a quarter of a mill. And no you can't have any