RE: DID OUR "WORLD LEADERS" JUST PUSH GLOBAL RECESSION AWAY from our doorsteps?
Dear @achim03
Thank you for your great comment.
In Switzerland for example we have a negative interest rate. This means that you are actually being paid for making depts! How crazy is that.
That's very unique. I wonder what is advantage and disadvantage of that solution. In a long term (probably longer than our life) this system sounds like a economical suicide.
ps.
Recently I've bumped into this site: https://www.usdebtclock.org/world-debt-clock.html
It does shows debts of all major countries and I noticed that with few exceptions everywhere debt is increasing. However 4 countries (including Poland and Germany) seem to have their debt going down.
And I was wondering how could that be possible? Also I realized that Poland has very good ratio between debt to GDP (around 50%), which is great comparing to countries like France (107%) or Italy (147%). Not to mention JApan (261%).
I found it so confusing. It would suggest that Poland have more stable economy than majority countries out there. Looking at those numbers could even suggest that Japan is serious financial trouble.
Mind sharing your thoughts?
Yours
Piotr
Hi @crypto.piotr,
I found the link quite interesting. It's amazing to see how much dept there is around and how fast it developps. I share your feeling about confusion... It's difficult to interpret these numbers correctly. One thing we should keep in mind is that all these dept is compared to the GDP. So this means that to make these numbers look better governments can either reduce the dept by reducing spending, or they can try to increase GDP by spending even more. Politically speaking it seems always easier to spend more to "encourage" the economy.
Probably the whole castle of cards would come crumbling down if we had a new economical crisis with lower GDP's.
What can we expect of this? I don't know but I doesn't seem a healthy tendency ...
Cheers
Achim