where is all the money coming from ?
Jon Ison - 27/6/12 at 11:49 AM
And who as it, someone must ?
Not a political point and don't want a political debate about it, on the news last night we are told our government (could be any colour) as
borrowed a further £18bn on top of what we already borrowed, could be any number realy its an answer to the question below I'm interested in not
the numbers.
Where from, someone somewhere as a bloody big pot of money somewhere ?
In layman's terms please.
[Edited on 27/6/12 by Jon Ison]
coyoteboy - 27/6/12 at 12:02 PM
AFAIK It's all made up. It's leant by other countries and they don't have it either, they're just expect to have it in the future
and the country borrowing it hopes to have it in the future too.
http://www.youtube.com/watch?v=aKpE0HqJtow
hughpinder - 27/6/12 at 12:05 PM
From two sources of borrowing:
1) From people in the UK who buy Government Securities and National Savings products.
2) From the "International Money Markets". That basically means we buy oil from Saudi Arabia and goods from China but don't sell them
anything in return, so they have a load of our cash that they lend back to us.
Repaid from tax income:
http://en.wikipedia.org/wiki/File:UK_taxes.svg
Regards
Hugh
russbost - 27/6/12 at 12:19 PM
Told by a merchant banker friend (is that rhyming slang???) that the only major countries lending to the rest of the world are China & India - so
much for them being 3rd world!
loggyboy - 27/6/12 at 12:26 PM
Simple, money doesnt exist, its just numbers on a computer. It is the promise to pay the bearer (historically in gold).
Jon Ison - 27/6/12 at 12:26 PM
so we are potentially borrowing our foreign aid back ?
Jon Ison - 27/6/12 at 12:29 PM
quote:
Originally posted by loggyboy
Simple, money doesnt exist, its just numbers on a computer. It is the promise to pay the bearer (historically in gold).
That was the conclusion I came to prior to posting, we have a busy online business but never see any cash, just numbers on a screen.
big-vee-twin - 27/6/12 at 12:48 PM
From the BRICS counties they are all growing tremendously fast and borrowing money to the rest of us. Certainly China, India and Brazil are.
BRICS- Brazil, Russia, India, China, South Africa.
steve m - 27/6/12 at 02:36 PM
IMHO if we didnt spend so much money fighting in some one elses wars, we would not be in this mess
just my opinion !!
steve
TheGiantTribble - 27/6/12 at 02:54 PM
http://www.youtube.com/watch?v=I5QwKEwo4Bc&feature=relmfu
NB :- the numbers quoted were correct in 2010...and baring in mind what has happened since kinda shows the house of cards falling quite nicely.
designer - 27/6/12 at 03:20 PM
It's all in the 'ether'. It's paper figures based on expectations and promises, and as long as we keep on doing things this way
the world will never get anywhere.
We will stick at the 'status quo' with the rich getting richer and the poor staying where they are!!
bobinspain - 27/6/12 at 04:14 PM
Bottom line is any government controls the printing presses.
A fiat currency, from the Latin 'make it happen' is intrinsically worthless. It has no value. The average lifespan of a fiat currency is
30-40 years and there have been many hundreds. NONE have survived.
The dollar was tied to gold until 1971 when the 'gold standard' was dropped. It's now worth intrinsically a 'promise to pay'
and that's it.
The pound sterling's been around for over 300 years. At its inception, the pound was worth 12 ozs of silver. It's now worth one two
hundredth that value.
Think about how buying power's been eroded and debt has increased. It's getting to Weimar Republic proportions where a barrowload of
Reichmarks wouldn't buy a loaf of bread.
Think about the US debt. 10, 15, 20 trillion? Who the hell knows? A trillion dollars denominated in thousand dollar bills would stack up to a column
68.9 miles high !!
It's all to do with 'exponentiality.' Check out ChrisMartenson.com He explains how the next 20 years will be like nothing ever before
experienced, due in the main to exponentiality in relation to population, inflation, peak oil, consumption etc.
Eg. Imagine you're in Wembley Stadium at 12 noon and for a trick, a magician handcuffs you to the top rail in the stands. In the centre of the
pitch, he places one magic drop of water with the capacity to double in size every minute. So after 5 minutes, there's a thimbleful. The question
is: how long have to got to get yourself free before you're overwhelmed by the water? A day? aweek? a month?
The answer is that you'll be drowned by 1250. At 1245, the stadium is only 3% full therefore 97% empty of water, but you're dead 5 ninutes
later. Such is the power of exponentiality.
We are on the cusp of bad things happening. The website is worth a look. It's both fascinating and worrying in its revelations.
Sweet dreams!
[Edited on 27/6/12 by bobinspain]
RK - 28/6/12 at 01:51 AM
Except governments don't always control the money supply; in this country the big banks do.