How could All nations resolve their debts problem? Would anyone please enlighten me? Thanks in advance!
Default. Or print money via the central bank and pay off the debt. The second results in massive currency inflation. Best idea is to nationalize banks.
Nationalization of banks leads to even more government control. The best is to stop using people's money to bail out sucker banks. This is painful but quick. Soon the better enterprises rise from the ashes. The other is to do what Ray Dalio proposes in his "economic machine" document. Let governments slowly inflate away the debt. It's less painful but those on fixed income, and those retired and old get crushed. Growth is retarded for years to come. This is the path the Western governments have taken. Gringo
+1 Gringo. I agree: let free markets work. No bailouts. I support nationalization because fractional reserve banking essentially 'borrows' the Peoples money via debt creation without the People benefiting from their stolen purchasing power. I concede it's pretty fairy taleish, and camels nose under the tent. So yes, free market all the way.
All the nations have their own specific strategy to resolve this situation, countries like China and India who are developing adjust their overall imports and exports to pay of the debts, where as developed nations have different accounts to settle their debts.
Does good ol' Ray say what happens if the debt climbs much faster than the slow inflating away part - you know the black hole effect? Isn't that like bailing out the titanic with an ice-cream pail? The last time he suggested a perfect deleveraging by the FED, the unemployed and middle-class got taken out to the woodshed as the leveraging increased worldwide - that was not so perfect. I think Ray is just simply his book like other traders. He makes good videos however.
I think that inflation will no longer work and that we are now awaiting the next world recession's effects. IMO, default is now the only way out, but who pays the bill is my question. "if you find yourself in a hole, stop digging"! If you do think of a way, please email the BIS or the FED since I am pretty sure they would like to hear it. Do you think the present world economy is the one Gentle Ben or Al would have chosen? Really?
Too many financiers, bankers, politicians, listed corporations, ... Too few statisticians, economists, econometric modellers, systemic thinkers, ... My guess is a few weak economies will fall, in order to save other strong ones, ...