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Who do we owe all this money to?! Watch

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    This so called multibillion pound deficit is absurd.

    If every country in the world is in debt who is the entity that we owe it to?

    Or if it's one of those I owe you, you owe her, she owes him....

    Then could we not wipe the slate clean?

    Am I missing something?
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    Banks loaned money (which wasnt banks money) to people who couldn't pay it back. Bankcrupt.

    Gov steps in

    Gov goes bankcrupt

    Chuck norris saves the day (yet to come)
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    Simon Cowell.
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    (Original post by Omg!Rly?)
    they owe us
    Lol who in the world is 'they'?
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    Other countries, banks stuff like that people who buy and own government bonds
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    When governments are in debt they issue things called bonds. These bonds are bought by countries, institutions, and private investors.

    Oh and who can forget Quantitative Easing... The Bank of England also buy them

    We can not just "wipe slates clean" a lot of your parents pension funds would be tied up in bonds.
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    (Original post by Aj12)
    Other countries, banks stuff like that people who buy and own government bonds
    But aren't those other countries in debt too?
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    (Original post by CoffeeStinks)
    But aren't those other countries in debt too?
    Yeah.
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    Private bankers - read about the Rothschilds and co.
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    Not sure
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    I was having this conversation with my Mum last night. There's some really rich smug bloke sat on a beach somewhere..
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    "Country foreign exchange reserves minus external debt"

    Not all countries are in debt.
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    (Original post by Huskaris)
    When governments are in debt they issue things called bonds. These bonds are bought by countries, institutions, and private investors.

    Oh and who can forget Quantitative Easing... The Bank of England also buy them

    We can not just "wipe slates clean" a lot of your parents pension funds would be tied up in bonds.
    From what I can remember bonds are like I.O.Us. So the system of bonds would fail if the majority of countries turn to bonds instead of tangible money. If the countries buying the bonds also have massive debts of their own then how does it help the economy?
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    Countries don't really buy them though. It's mostly countries that issue them. Its through bailouts (Greece, Ireland) that bonds are bought by other countries, and that is pretty rare.

    Mostly its the private sector that buys them, and at the moment the Bank of England haha
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    (Original post by Ewan)


    "Country foreign exchange reserves minus external debt"

    Not all countries are in debt.
    So if I'm to assume that the chart is evenly distributed then one country in the whole world does not have some form of debt?
    Wait, what do the grey areas represent?
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    (Original post by CoffeeStinks)
    From what I can remember bonds are like I.O.Us. So the system of bonds would fail if the majority of countries turn to bonds instead of tangible money. If the countries buying the bonds also have massive debts of their own then how does it help the economy?
    Economies are interlinked. China invests in US debt because they believe it will help improve the US economy thus improve their export opportunities. The UK invests in US debt for similar reasons.
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    (Original post by Huskaris)
    Countries don't really buy them though. It's mostly countries that issue them. Its through bailouts (Greece, Ireland) that bonds are bought by other countries, and that is pretty rare.

    Mostly its the private sector that buys them, and at the moment the Bank of England haha
    So if the banks have enough money to buy bonds would that not mean that we are not in the amount of debt that the government say we are?
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    (Original post by CoffeeStinks)
    So if I'm to assume that the chart is evenly distributed then one country in the whole world does not have some form of debt?
    Wait, what do the grey areas represent?
    N/a or no data.
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    (Original post by CoffeeStinks)
    So if the banks have enough money to buy bonds would that not mean that we are not in the amount of debt that the government say we are?
    Why would we not be? :-S
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    (Original post by CoffeeStinks)
    So if I'm to assume that the chart is evenly distributed then one country in the whole world does not have some form of debt?
    Wait, what do the grey areas represent?
    It's not the whole picture. It's very complicated I guess, I don't know that much about it. I do know China & other east Asian countries (Japan especially) essentially bankroll the US deficit though (they buy US treasury bonds, China owns around 900 billion $ in US treasury bonds for example).
 
 
 
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