A Simple Explanation Of The Current Economic Situation

This was a brilliant way to explain the debt problem !

What a lot of people fail to see, is that a build up of debt in big scale does not happen in one day!!!

And then when one person thankfully come up with the idea to go public with it and do something about it we all get nervous and angry because from one moment to another we feel broke...

 

What about the French wine bar which is tottering? And is Germany, finally, going to conquer Europe?

 

In theory, we did. In fact, all those countries we beat, but then had to finance to rebuild both economy and enviro structure.

 

When you see things like last Sundays rememberance ceremony you cant help wondering why they all died, and are still dieing.

We have given in to European domination, lost fee speech, and they are even trying to stop you smoking in your own car.

Back on topic.

What ever happened to a sensible intrest rate for borrowers and investors?

 

I agree with all those sentiments. If someone wants to smoke in there OWN property then who should stop them?

 

Brilliantly put Shiney - that's exactly it. The problem is debt that cannot be repaid. And as Miraflores says - its been building for many years.

And America has most of it. They are the main problem; the Euro crisis is merely a sideshow.

 

Talking about that...in Italy we often drink wine at the meals and not in order to get drunk one glass after the other at the pub.
In Nordic Countries they are bored in the dark and they have nothing else to do so therefore they use alcohol in order to think of something else.

 

I'm sure I've read somewhere that there's more debt in the world than money.

 

You are right Scrungee. I have been reading a book about how this all happened. And it quotes that, at the peak in June 2008, the global derivatives market was estimated to be $760 trillion - more than 10 times world GDP (ie world income) of $55-$60 trillion.

Derivatives were originally insurance mechanism for farmers to sell their crops to be delivered at a future time at an agreed price. Thus giving the farmer a guaranteed income and allowing someone else to assume the risk. Nowadays the derivatives market is massively greater than is needed for this insurance. It is simply a gambling tool. The sub prime mortgages were parcelled up and sold off as derivatives - for a fee. These derivatives were then reparcelled and sold off again - for another fee. And so on and so on.

 

I worked in Denmark in the early seventies, in a foundry. And I still remember the Danish workers qeueing up in the canteen at 6am to buy their bottles of lager. Which they would drink throughout the shift.

 

I dont pretend to actually understand what is going on Peter, but is it not the fact that we are tied to Europe and they the Euro, that is dragging us down.
If the US is in debt, (arn't we all?), is it not less of a problem for us?

I dont think I can remember a time in my life when the UK was NOT in debit, going right back to Harold Wilson's days, and the devalued pound.
I even remember not being able to take more than about 50 quid out the country back in the early 70s.
Then the miners strikes and the three day week.

So, things have mostly been tight, and we have mostly been told to pull in our belts, its only been the last few years, (about 15), since Gordon Brown pronounced, "no more boom and bust", that we have actully been hoodwinked into thinking that the good times were here to stay.

 

The grape pickers who work on South African wine farms refuse to pick grapes unless they have their wine at regular intervals during the day which is supplied by the famers they work for

worked at a company in the docks in Durban South Africa.... next to us was a ship building company .... many welders could not weld properly unless they had cannabis several times a day .... you could smell it a block away