World debt and currency reset

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There were cases of huge national debts that were totally scrapped. That is one thing that we should not be seeing. That implies one most important thing, that the fiat system is perfect in its imperfection and is not reliable at all. The system is as flawed as it is being ruled by people whose subjective decisions will put other people or countries at the cruel end of poverty while the others live a decent life. And only for what? Only for their decisions about a certain fiat which has no actual value in truth.

Such cases should not be easy to erase because they will not have any responsibility at all, it is better than any debt must be resolved fairly, the system is not instantly able to be good, only all the systems used can still be revised and carried out evaluation so that it can create a strong system and no more disability. such a process must be gone through and is mandatory because it can later provide a powerful system.

[Wexnident]

No, no they can't just bloody wipe the debts of the world, write it off like it's a bloody joke. They must properly address such events otherwise history would only repeat itself. I'm pretty sure OP posted this because of the recent announcement of the global debt by the end of the year , which amounts to $255 trillion, which is honestly not a small amount.

I just wish the government could provide a proper solution, instead of deceiving the masses, making them accumulate more debt to pay the global debt. Them not addressing the problem early on really gives out the message that they don't give a thought about anything that could happen to the world economy.

[mu_enrico]

Debt is not all bad. For example, if you own a company, you will always have debts for multiple activities, e.g., investing activities, operational activities, etc. A company might have short term debts for raw materials provided by its suppliers at some point. Hence, if the mentioned company goes default, the effect would spread to other companies. There's no such thing as wiping out the debts or "reset," if not all the affected parties can all agree with it.

The same logic can be applied to the country's debt or sovereign debt. If a country goes bankrupt (or default), there will be negotiations between all stakeholders. Well, the lenders can indeed forgive/erase the debt, but that's usually when the borrowers are too miserable at the point of the lenders think that no way the country will be able to recover ( and repay its debt).

[GideonGono]

They will restart the whole system and nobody have no debts at all.

There is possibility for that. There is what is called debt forgiveness. The government do that sometimes to its
states when it is obvious that the debt is too much or sometimes, some part of the debts are cancelled.

Never heard of debt forgiveness but as I recall that when a country owes money to another country and couldn't afford to pay it due to the huge amount which is mostly because of the interests it accumulated throughout the years. The party involved would come to an agreement where they would lease their port for a certain period of time which commonly happens in China and those who have debts on them which some people call it China money debt trap or something like that (can't remember the exact name).

[alexsandria]

How come it would be reset when in the first place their debt wasn't in the government. It ain't working that way, people who lend their money might get their wealth fall down. And in addition, people who had alot of debt might abuse such system 'cause it is definitely their advantage and would probably result to big problem and worst chaos.

[Getmon]

How come it would be reset when in the first place their debt wasn't in the government. It ain't working that way, people who lend their money might get their wealth fall down. And in addition, people who had alot of debt might abuse such system 'cause it is definitely their advantage and would probably result to big problem and worst chaos.

Well, it is not a wonder to behold because the financial players up there in their exclusive ivory towers are the ones who dictate all the rules. Down here in our dirty world, that is too much to imagine. That is impossible in our limited world. But for those who are up there who made money itself, created them up to how much they want, distributed them to whoever they prefer, and used them to destroy whatever they want destroyed, that is very possible. That is why fiat is plain bullshit. Bitcoin and crypto is our best weapon against them.

[karanggatak]

I don't think the government will be able to write off debt. because surely this will be refused by those who give loans. they will try hard to get their money back. the state is also like that if a country owes to another country if the country is unable to pay the debt then surely they will take the country's land in exchange for their debt. and changing currencies is not a good way to settle debts. because there are still parties who will be harmed.

[Ailmand]

Not even a chance, the reason why some countries have power/authority over some country is because of debt. They have control over natural resources, manpower, business expansion, etc because of debt. If we will all go back to zero leading countries will lose their power.

[AniviaBtc]

They will restart the whole system and nobody have no debts at all.

There is possibility for that. There is what is called debt forgiveness. The government do that sometimes to its
states when it is obvious that the debt is too much or sometimes, some part of the debts are cancelled.

That is very impossible to happen, there's a lot of factor to consider before the government to take actions in that kind of situation. Yes, debts are also important but that's the purpose why people work hard just to earn money. They value money so much that they can sacrifice their time and effort just to earn money.

They can't reset everything for the fresh start, imagine people living without debt and restarting themselves. It is very hard and unfair to many.

Government should think of another solution to that economic issue. Not just a careless action that can harm many people.

[Dart18]

Imagine your currency having exaggerated less value.
Like for 1 USD you will need 1 million of your currency.
Now, before you got 2 million debt in your bank with your currency.
You will just need to pay 2 USD to fill that debt and voila you are free.

That will be the case if your economy suddenly went down specially in the financial region. It can happen.

[Kprawn]

A lot of countries have had their debt written off or debt cancelled by the World Bank, just like some companies write off people's debt when it

becomes clear that those people would not be able to pay back the debt. In some instances this come with some sort of asset transfer agreement,

but in most instances this happens with no requirements. Example : https://www.theguardian.com/politics/2005/jun/11/uk.g8  These countries will

then offer some tax incentives for these countries or Banks to operate in those affected countries. (Less import duties etc.) This is how 1st world

countries get there claws into poorer countries, because they get leverage to broker other deals that would favor them in the future. 

[gabmen]

A lot of countries have had their debt written off or debt cancelled by the World Bank, just like some companies write off people's debt when it

becomes clear that those people would not be able to pay back the debt. In some instances this come with some sort of asset transfer agreement,

but in most instances this happens with no requirements. Example : https://www.theguardian.com/politics/2005/jun/11/uk.g8  These countries will

then offer some tax incentives for these countries or Banks to operate in those affected countries. (Less import duties etc.) This is how 1st world

countries get there claws into poorer countries, because they get leverage to broker other deals that would favor them in the future. 

Just goes to show how the world is run by bankers more than governments. It's impossible to reset  a country's debts since that's how the people in power take control. I'm just curious as to how ended up with this kind of system and where exactly is the point where this started. Like how did the countries start accumulating debts in the first place.

[Mometaskers]

That's pretty rare and don't know anyone who was a beneficiary. Heck even country's can't just escape their debts. Look at Greece, it's been in debt ever since it became independent. They'll just get the next government to pay it. If they weren't completely responsible for installing one that promise to pay them back.

On the individual level the only "debt forgiveness" I've seen at least in my country are for taxes. Basically they just tell you that they are willing to forgive part of the interest on tax you missed as long as you finally pay them.

Debt is not all bad. For example, if you own a company, you will always have debts for multiple activities, e.g., investing activities, operational activities, etc. A company might have short term debts for raw materials provided by its suppliers at some point. Hence, if the mentioned company goes default, the effect would spread to other companies. There's no such thing as wiping out the debts or "reset," if not all the affected parties can all agree with it.

Unfortunately today people get in debt for things that don't allow them to get any profit out off. I'm seeing issues about student debts in the US and I think it's unfair for responsible people that have already paid up their's that they'll end up having to pay for those that got vanity courses like gender studies who can't maintain a job to pay their debts.

[electronicash]

A lot of countries have had their debt written off or debt cancelled by the World Bank, just like some companies write off people's debt when it

becomes clear that those people would not be able to pay back the debt. In some instances this come with some sort of asset transfer agreement,

but in most instances this happens with no requirements. Example : https://www.theguardian.com/politics/2005/jun/11/uk.g8  These countries will

then offer some tax incentives for these countries or Banks to operate in those affected countries. (Less import duties etc.) This is how 1st world

countries get there claws into poorer countries, because they get leverage to broker other deals that would favor them in the future.  

Just goes to show how the world is run by bankers more than governments. It's impossible to reset  a country's debts since that's how the people in power take control. I'm just curious as to how ended up with this kind of system and where exactly is the point where this started. Like how did the countries start accumulating debts in the first place.

a country can always have money, they can collect tax from their citizens without even returning a good projects for the benefit of the people. governments are there to govern the society, they pay police/military men to protect citizens and they need to collect funds for that.  countries who will venture to give benefits to their fellow men will develop projects which they ask funds from neighboring countries and normally the conditions are not for public reading but certainly these will have interest and if defaults will have corresponding sanctions.

Japan is a rich country and will fund projects in Philippines but this fund will be sort of a debt and will have interest and also the raw products must come from Japan as well as it will be on the contract. That's how they make demands for the JPY too making their economy better while enriching thru interest and selling their products. That's how countries get to have debts, you can relate this to procurement.

[airdnasxela]

It's like part of a country to have debts. Almost or all every country have debt to other countries. Even developed countries have debts. But that doesn't mean they have to reser the currency just to remove all debts. As far as I know, a country is continuously paying its debt but that don't conclude that they'll be on financial crisis.
If the world we're going to reset the currency to remove all debts, we will still end up with debts with that new currency so I guess we cannot escape debt.

[Hallmader]

There were cases of huge national debts that were totally scrapped. That is one thing that we should not be seeing. That implies one most important thing, that the fiat system is perfect in its imperfection and is not reliable at all. The system is as flawed as it is being ruled by people whose subjective decisions will put other people or countries at the cruel end of poverty while the others live a decent life. And only for what? Only for their decisions about a certain fiat which has no actual value in truth.

Such cases should not be easy to erase because they will not have any responsibility at all, it is better than any debt must be resolved fairly, the system is not instantly able to be good, only all the systems used can still be revised and carried out evaluation so that it can create a strong system and no more disability. such a process must be gone through and is mandatory because it can later provide a powerful system.

If I can still remember it right when this kind of topic was discussed during my student days, offers to totally scrap off a certain country's debt is for those countries that have just attained democracy. This is the transition phase from a dictatorial or totalitarian phase into a democratic phase. For these countries to be able to start from scratch clean and not from the remnants of the old regimes, they have the option to accept the offer and develop their economy from there.

[supercanada1]

A lot of countries have had their debt written off or debt cancelled by the World Bank, just like some companies write off people's debt when it

becomes clear that those people would not be able to pay back the debt. In some instances this come with some sort of asset transfer agreement,

but in most instances this happens with no requirements. Example : https://www.theguardian.com/politics/2005/jun/11/uk.g8  These countries will

then offer some tax incentives for these countries or Banks to operate in those affected countries. (Less import duties etc.) This is how 1st world

countries get there claws into poorer countries, because they get leverage to broker other deals that would favor them in the future. 

Just goes to show how the world is run by bankers more than governments. It's impossible to reset  a country's debts since that's how the people in power take control. I'm just curious as to how ended up with this kind of system and where exactly is the point where this started. Like how did the countries start accumulating debts in the first place.

When they have the solution for this problem, they just need to avail it. The millennial generation has internet. They can find a lot of ways to make money by going online and searching on google. Even after having bitcoin, if these people are still facing economical problems, then it is due to lack of their own knowledge. If they will earn bitcoin, all debts and financial crisis will get resolved.

[yoseph]

Governments can actually do whatever that they want, the can decide to forgive bad debts and even redenominate their entire currency whenever that they want. Because they control the central bank of their respective countries. Take a look at the economy of Zimbabwe which is in tatters because of poor economy management. They had to redenominate their currency just to prevent people carrying a bus load of money just to buy bread.

[1Referee]

Absolutely! It would be better if Bitcoin's advantages will be recognized and be allowed to grow with confidence among non crypto people though I think a decade will not be enough to achieve optimum adoption. Imho.

The good thing about Bitcoin is that it combines money with tech in a completely new and exciting fashion, and let the younger generation be a tech generation. In that regard, the rate of adoption will be exponentially bigger and faster for Bitcoin than it has been with previous forms of money. But you might be right that a decade isn't enough.

I just want Bitcoin to take over, regardless of how long it takes, and with governments continuously making horrible financial decisions, they only make it easier for Bitcoin to do so.

[el kaka22]

I think the best case scenario would be the the jailing of the huge banks with debts. Now you may think "how can you jail a bank" but the paper work is always there, whoever had their say in getting more and more debt and being in so much risk should be jailed. Do you know how horrible our economic system right now? Even after 2008? Banks are trying to make more and more money while getting it with more and more risks once again like they never learnt anything from 2008.

Well they did learned something, they learned that even when they do horrible stuff they are actually untouchable because government doesn't know what to do and that is why they can lose as much money as possible and if they ever go bankrupt the government will save them. If we jailed all the important figure heads during 2008 that caused it, everyone would have been more careful today.