borrowing money from the world bank

[gary hubbard]

big question . if all countries are badly in debt. who are they in debt too . if we are borrowing off of the world bank. it seems that we are paying massive amounts of interest for in theory of borrowing off our selfs . dosn,t the buck stop at the world bank . they getting rich from others getting poorer .and who is benifiting from it . is it about time things have too change . EG money as we no it .

Edited by gary hubbard on Sunday 17th July 14:22

[Motorrad]

I'll say this nicely because other people probably won't.

This may not be the best forum for you.

[RemainAllHoof]

Motorrad said:

I'll say this nicely because other people probably won't.

This may not be the best forum for you.

Innit.

[anonymous-user]

It may be nice if someone could explain it to him then he will know

[gary hubbard]

my point is that the system that is used a the momment is obversely not working and hasn,t worked for years .every countries in debt . we lend to other coutries then we borrow from some one esle . goes in 1 big cirle . the system is bound to collapse.

[Dr Jekyll]

It isn't that countries are in debt so much as governments, they owe it to banks mainly.

[otherman]

gary hubbard said:

my point is that the system that is used a the momment is obversely not working and hasn,t worked for years .every countries in debt . we lend to other coutries then we borrow from some one esle . goes in 1 big cirle . the system is bound to collapse.

You're point is wrong though. Not every country is in debt. Net debt is what counts, because debt that you have assets to back up is sustainable (eg, you own a house worth 100k and owe 50k on it). Its more meaningful to look at net international investment. Then you can see who owes more than they have.
Countries in the most credit are Hong Kong, Singapore and China. Those in the most net debt are Portugal, Ireland and Spain - this will make a lot of sense if you've been watching the news in the last year or so.
http://en.wikipedia.org/wiki/Net_international_inv...

Edited by otherman on Sunday 17th July 15:35

[Incorrigible]

Another thicky beginner question

How does (will) the difference in relative debts affect countries with the same currency ?

I'm thinking Eurozone obviously

Or do The other countries just have to help out

[otherman]

Incorrigible said:

Another thicky beginner question

How does (will) the difference in relative debts affect countries with the same currency ?
I'm thinking Eurozone obviously
Or do The other countries just have to help out

Countries with different economic strengths trying to share one currency is what the euro crisis is all about. Fundamentally it doesn't work, either they need to behave like one country or split back to independant sovereign currencies.
For instance Germany wants to bail out Greece but on a loan basis, so they have to pay back and have no current means to do this. Imagine if the US did this, the goverment send bail out money to new orleans to clean up their hurricane mess, but say its a loan, you have to pay it back.

[davepoth]

The tricky bit about it is that the loans are made to countries based on future economic growth. It's similar to you going to the bank and saying "rather than my salary now, when you work out my mortgage can you take into account the fact that I'm sure I'll get a 5% pay rise every year please?" and the bank believing you.

[Incorrigible]

Yeah I get that bit. Also I can't see all eurozone countries going back to their original currencies. Also I can't see how it's going to pan out. I guess the "crisis" will become an actual crisis at some point, then we'll know

[davepoth]

Incorrigible said:

Yeah I get that bit. Also I can't see all eurozone countries going back to their original currencies. Also I can't see how it's going to pan out. I guess the "crisis" will become an actual crisis at some point, then we'll know

It's unlikely all the currencies will come back, but a core of Euro members (the ones who did actually meet the entry requirements rather than changing their accounts to it looked like they did) will probably stick with the Euro, and it'll work properly then.

At some point in the future the others might get let back in, but they'll need to meet the fiscal requirements properly.