This morning on the news the two main headlines were that our economy is in the sh*tter (for want of a better phrase) as the GDP only grew by 0.2% in 3 months, and that America has one week to sort its economic policy out or it's broke.....Now, I have little to no understanding on how the world economy works, but all day I've just been sitting here thinking about it, more and more questions whizzing round my head....
If the whole world is in debt, who do they owe all the money to?
If the whole world decides not to pay up….what will happen?
If the worst thing to happen is that all the banks lose the money they lent to everyone – is that such a bad thing?
If debt was completely removed from the equation, would the world be an easier place to run?
If everyone from corporations to countries to a teenager fresh out of school knew there was no borrowing of money, how different would the world be?
Is the world awash with money that doesn’t actually exist?
If money goes into my bank, and then out again via a debit card or direct debit….did it ever really exist as cold hard cash?
How can a debt every really be repaid if all money is lent by the banks, who print the money, then add interest to the loan?
Where does the money for the interest come from?
Hmmm I wish I understood economies, monetary systems or even how countries can be in debt by billions, how have we got into such a mess? Brought to you by the girl who can barely afford to buy food anymore….
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