Why global debt may never fully be repaid.

[CTO114]

The general assumption at face value when it comes to the repayment of debt is that, eventually countries pay up and are free from indebtedness. While this is true principle, it is quite different from what is in practice. Here's why;

At sovereign levels, many economies are surviving by; refinancing debt and rolling debt forward,bin some cases countries even surrender a chunk of their natural resources for a couple of years to be able to qualify for more indebtedness.

With critical analysis we're seeing that the modern financial system is functioning more like a perpetual debt maintenance than a normal repayment structure.

What this means is that, inflation is may become politically preferred to austerity, changing the long term meaning of currency preservation.

[_act_]

The general assumption at face value when it comes to the repayment of debt is that, eventually countries pay up and are free from indebtedness. While this is true principle, it is quite different from what is in practice. Here's why;

Almost all countries just prefer to only service debt than not having debt. This is the world has been since many years ago. The government believes they can achieve more without no being in debt. Although some countries are in low depth, while some countries like United States are in high dept but well developed.

What this means is that, inflation is may become politically preferred to austerity, changing the long term meaning of currency preservation.

Inflation has been politically preferred since fiat was created from nothing.

[Exitoral]

Global debt first of all can never be repaid. I just think all we are doing is one big Ponzi scheme. Never ending. Always running. Printing more money to finance a debt that keeps growing and the circle continues.

Most of these countries that borrow money from IMF will never grow economically. It's by design. One big debt trap.

Let's put this into perspective. If the world owes money. Who then are we paying it to? That alone will tell you no debt will ever be paid. It will just keep on climbing until the entire system collapses.

[Knight Hider]

The general assumption at face value when it comes to the repayment of debt is that, eventually countries pay up and are free from indebtedness.

Debts are paid back by creating new and bigger debts.

[Sanitough]

Because once its done, it would drain the world's money supply and therefore an economic collapse with be highly possible after.

So its not surprising why countries practice credit expansion instead because the financial system is built on debt, and it is clearly seen that the country's government rely on deficit spending just to see an economic growth, and eventually repeat the rollover cycle to maintain liquidity.

In the end, with the loan's compounding interest, debt continuously grow until its hard for any country to pay its old debt without applying for a new debt.

[Akbarkoe]

Borrowers of money must have hidden intentions in it like what the IMF did, they gave Indonesia a prescription in 98 to improve the economy but afterwards it became even worse because of their advice, capitalist borrowers are really crazy in terms of terms that can threaten sovereignty, if we refuse to borrow whether it is true or not they will carry out propaganda in your country so that you are forced to borrow.
The world is hard enough for those who don't understand how these debts work, it's better not to have any, but the situation is definitely difficult after borrowing will definitely borrow again, many things are not known behind the table of agreement.
Now it's a problem that continues to spiral, the country can only pay interest on the debt, while the debt continues to grow every period.

But I always believe that the world's debt problem will inevitably become a bubble that bursts and resets the system to a better one.

[STT]

Debts are paid back by creating new and bigger debts.

Sounds like the liars paradox, the debt is not ever repaid I think we can just agree on that rather then go in circles. 

If each dollar were denominated in the year of issue as its value then the problem would be more obvious.   We aren't ever repaying the value taken in the first place, they give interest upon it I suppose is fair to say.  Its also notable that the market is increasingly asking for more interest to accommodate this inflation meta that is becoming more concious and obvious in its damage to value of investors.

[juttsab@]

Many countries around the world are not fully paying of their National debt instead they are keeping it at a manageable level according to their economic growth. They are refinancing their old debt with new borrowing. Main problem rises when the value of the debt grows faster as compared to the economy of the country  and the government become dependent on the value of inflation so that they can reduce the real value of what they owe. It is very easier for the government to increase inflation as compared to increasing taxes but when there is a very high increase in inflation then the value of the currency becomes weaken .

[boyptc]

Imagine there's the country that lends money to other countries by printing more money and when that happens, inflation is hitting badly.

And when the lender's economy has been hit badly due to higher inflation, they'll have somehow to do the same thing as what others done to them which is to take a loan.

It's a cycle that will never end and for generation to generation, they're all going to pay the debt and that's the mission for all of those who's got debt.

They will have hard time in clearing their debt because it's not the priority where the spending should also be done in improving infrastructures and other government services.

[Don Pedro Dinero]

The general assumption at face value when it comes to the repayment of debt is that, eventually countries pay up and are free from indebtedness.

Debts are paid back by creating new and bigger debts.

That’s right. Many people don’t realise that the debt-money system we live in tends towards constant and potentially infinite expansion of the money supply because, when debt-money is created, the problem is the interest – which isn’t actually there – and the only way to pay it back is to create more debt ad infinitum. There are just a few minor bumps in the road, known as crises, where politicians and central banks temporarily reduce the money supply until they expand it again by much more so that the system does not collapse.

It is totally fucked up.

[JeffBrad12]

Yeah modern economy is just refinancing the debt and do nothing substantial to pay it off, there is no such thing as making roadmap to pay off the debt and bring it to zero.
It's either you refinance the debt or you go collapse there is nothing in between for most developed countries.

But since economy of each country so entangled, they normalize it. It's honestly the entire system, people who put some attention into this knows it very well.
Just countries borrowing and lending to each other, the modern economy in a nutshell.

[viljy]

Global debt is a way for some countries to exist either at the expense of future generations or at the expense of other countries. Of course, this debt will never be repaid. Inflation can devalue the national debt, but along the way, inflation devalues people's savings, which is much worse. Up to what point will this bike continue to move until it falls? I think that the remaining time is calculated in a few years.

[Kelward]

We just have to accept that countries and depts have become sinonymous because their is always eager institutions who are willing to borrow them and that is how institutions like IMF and world bank are surviving. My problem is not about borrowing but what the funds are used for, if they are channeled into sectors that are productive then it won't be a problem because they will add value to their economy.

Unfortunately some countries take loans for the wrong purposes and on top of that they will pad budgets inorder to syphon most of the borrowed funds, in the end they will be creating dept burden for the country's future generations. Also it's not as if a productive economy like America, doesn't have the resources to pay off their country's dept but for some reasons they will rather be paying interest while leaving the loan capital untouched. Perhaps these countries that have what it takes to repay their loans but decides not to are indirectly keeping the loan institutions in business, this is my own thoughts.