If everyone's in debt, who do we owe money to?

[muchtoofair 10]

No...Banks make money by lending people relatively small amounts of money and charging interest until it is repaid. By the time someone is in debt to 3 times their annual income there is little prospect of getting the money back because people have to live on something as well as paying the interest. That is called toxic debt and is what caused the banking crisis in the first place.

 

Yes,Clinton started messing about with Glass Steagall and started loaning to crackheads in inner cities,banks weren't really ready for that level of paradoxically "compulsory freedom" at the time and their inherently greedy nature sealed the deal.

 

Unrestricted Capitalism and cultural Marxism in bed together...deadly.

[chem1st 10]

It seems that every time you put the news on, it's all about companies, people and even countries struggling financially.

 

Our government is billions in debt. Our banks have needed billions of public money in bail outs to keep them going. Our high street stores are going bust. An increasing number of people are owing thousands on credit, and even our football clubs are millions in debt.

 

So if everyone's in debt, who do we all owe the money to? Surely if one man's credit is someone else's debit there must be some people and companies making an absolute fortune out of the rest of us!

 

Who are they and what are they doing right?

 

Lending pretend money in exchange for control of commodity money.

Allowed by an organization which imposes charges upon the exchange of commodities.

[Tony 10]

The government can't repay it. The government hopes that if it makes really deep cuts, then eventually it will not have to borrow as much each year.

 

The government's stated aim is to reduce the deficit - the difference between what it receives every year and what it spends.

 

It has no plans to reduce the amount it already owes.

It might not be able to repay it but it can shrink it.

 

Inflation

Inflation

Inflation

 

It's coming.

[tonkatoy 10]

It might not be able to repay it but it can shrink it.

 

Inflation

Inflation

Inflation

 

It's coming.

 

It doesn't work like that. The debt is in the form of bonds that need to be repaid usually after 25 years. In order to have the capital to repay matured bonds the government needs to sell new issues. To do that it needs to offer a yield that will tempt the market.

[Farslad 10]

Who owns the banks? Who wons The Federal Reserve?

 

There's your answers.