A rich American whilst travelling abroad stops in at a hotel, laying down a $100 deposit while he looks at the choice of rooms available. While the American is upstairs, the hotel manager takes the $100 and pays off his debt to the baker for the hotels bread. The baker takes the $100 and pays the miller for the flour used to make the bread. The miller takes the money to the local prostitute for 'services', the prostitute takes the money to the hotel to pay off what she owes for use of a room. The American comes back down stairs having changed his mind about staying there. He picks up his $100 which has come back to the hotel and walks out. Everyone's debt is gone and the American goes away happy with his money....
Currency is just a man-made promise from the Fed.
I agree with the previous statement that money should be done away with completely.
It has become nothing more than incentive for thieves and crooks to emerge and take advantage of hard working people. How does a utility company justify billing a customer disconnection and reconnection fees along with the outstanding balance they couldn't afford in the first place?
The rich have harnessed our natural resources in order to keep us slaves. The entire country is in debt, aside from the rich, and millions of tax dollars are spent on utility assistance because we cannot afford it. We need to eradicate money, continue working for the common good, and fashion a rationing system that cannot be abused. If this happens, we will eliminate drug dealers, prostitutes, crooked politicians, thieves, most murders and people can prosper in careers they aspire to not simply for the money.
Why not try settling? Like at the end of a poker game, how you sit down and say I owe him five dollars, he owes you five dollars, and you owe me five dollars, so we're all even. If any debt remains after clearing all that stands, then take a hard look at what can be done. Overall we are not alone, we do have one of the highest national debts in the world, but many other countries do too, so why not take the initiative and clear the debts? I believe people are stuck in the past with they owe us and we owe them, without looking at the big picture. People in charge want the money, they don't want a resolution.
Well, let me explain myself. First of all, why is it illegal? It's illegal because it came out of nothing. Yes, literally. If you can't understand that, then read about it. Second of all, if the money came from nothing, is it debt too? Yes, of course. Remember 2 things: 1. In Modern Money Mechanics, it says if you go to bank and deposit let's say 10,000 pounds, the bank can then lend 10x of that! 2. Is it possible to repay all the debt in the world? No! Why? Because then there won't be any money left in circulation!
With worldwide debt cancellation the world would have a breathing space to start anew. Debt is the cause of lack of growth, and economic world powers like the USA have more than the rest of the world's debt combined and this creates a lack of progress in the world's production and financial health. People are now holding tight to their wallets and not spending as they fear for their livelihood. Debt cancellation is not something to debate on, it is the right step in the right direction.
Money needs to become real again and the power to create money should be controlled by the government. All banks should be abolished, replaced with a National storage store, used only has a money storage facility. Borrowing money should remain possible without interest, failure of not paying back within a certain amount of time would be jail. Interest charges would be illegal, no matter the situation.
Its clear that the debt system is bound to collapse soon.
Because this debt is not repayable. The money that would be saved from the payments can become: lower taxes for private enterprises, social welfare for those needed. Everybody is aware that programs that suppose to solve the debt problem (austerity) they don't work out. Instead the debt pile grows, social unrest rise, economies are destroyed and most of all debt is not repaid.
All countries are in debt to one another, usually because of war and not so transparent dealings by business sharks. We play with peoples lives to make a quick buck and get the best deal without thinking about long term effects. How long will it be before we are being cash for our lives. How many desperate people would take £20,000 for a life time trip knowing it was their last, or to make their families life happier? Feeding a growing population is a bigger concern than satisfying peoples egos. Wipe world debt, open borders and lets develop the world.
What is the purpose of life? To run on a treadmill of debt? I think there should be a one time wipe out of all debt and let people restart their lives. People are living poor unhealthy lifestyles as a product of debt. I read they were planning to out microchips in babies born in the US starting this year.i thought this was the country of freedom, the country where people wanted to come to live free? This is the opposite, it is putting all Americans who are "free" behind bars.
A lot of developing countries borrowed money from banks in developed countries, with promises to repay, and then they had a government change. The new rulers feel it is not fair that they have to repay money from a previous ruler that may have been stolen or wasted. But, the problem is that a sovereign nation that cancels a valid debt will not be loaned new money. Who would want that risk?
Countries should not cancel their world debt but, instead, try to pay it off. A country is not like an individual person, where the canceling of the debt can, most of the time, be easily absorbed by the creditors or other entities that are owed money. If a country cancels the debt that they owe to another country, this could cause conflict and war.
Unless all countries in the entire world can come to an agreement to cancel all debts, either owing or payable, there is not a good reason to cancel debts incurred by one country or even a group of countries. Since debt is an obligation that needs to be met and a contract that is entered into, it would not be just for some to cancel their debt while others maintained it. If this were to happen on a worldwide and unanimous scale it would be acceptable, but otherwise it should not be done.
The main reason a decision to support cancellation of debt by a country would be to say that country would then start with a clean slate and not be burdened by the debt they have, however this is a poor argument. If one nation cancels debt then the rest of the debtor countries may follow suit, all of a sudden the creditor countries wary of losses would either stop lending or greatly increase rates to compensate for increased risk. This in total would cripple the international capital market and would stop all inter country lending which is vital to the health of the global economy.
No, countries should not cancel their world debt because the worlds financial situation would be thrown into disarray which would probably lead to a major stock and bond sell-off. And if these countries canceled their world debt than countries who have money would never again lend to poorer or less well-managed countries which in turn would make those countries much worse off and could lead them to harbor terrorists. This would make the whole world a less safe place.
Although many countries do have world debts, cancelling debts can only lead to future problems. The country is the extension of a group of individuals, and to disregard the money owed (taxpayer dollars!) and expect debt forgiveness is absurd. Just as any individual ought to remain fiscally responsible, so should countries learn to not mismanage funds.
To write off debt to a debtor with a clean slate can be an act of compassion. This is especially true when the debtor is disabled or unable to pay it back. However, many nations were loaned the money on the promise it would be used to develop infrastructure or education and health and welfare. Those countries benefited. Their expanded economies should pay it back. The only cases in which debtor nations should be forgiven are third world nations in which the dictator siphoned the international loans to their Swiss bank accounts and the Cayman islands. In those cases, the debt should be forgiven to the newly democratic nation - and then go after the dictator's bank accounts to get the money back.
A broad forgiveness of national debts destroys people and institutions that loaned the money. Ask how many U.S. citizens would lose their savings in treasury bonds if the U.S. said "we're not paying it anymore". How many insurance companies can no longer pay life insurance and other insurance claims because the government bonds they invested in are now worth only toilet paper?
Blanket debt forgiveness also gives a drunk a drink. Run up lots of debt, waste the money, then refuse to pay it back. What, then, is to teach them not to run up new debts? To prevent a future financial irresponsibility? Nothing.
While it would be nice if countries canceled all world debt, if this were to happen, the capitalist system of credits and debt could no longer function, since a good percentage of growth is predicated upon imaginary values that banks loan out that they really don't have.
Countries have no right to cancel their debt. If they borrow from other countries and have negotiations set in place, then the nation in debt needs to act responsibly. By violating their promise to repay, they will only stir up hate and anger from their debtor. This is not smart in a world ruled by terrorism and violence. It sends the wrong message to cancel your debt and play foul. If a nation does not want debt, they shouldn't borrow and print money in the 1st place.
Canceling the world debt would only cause even more economic troubles in the current finical climate. Many countries own debt and this is substantial collateral for their economies, by canceling this debt one is throwing the money away of other hardworking people. Debt cancellation is not the proper choice, rather debt and economic reform are better options.