Quote:
Originally Posted by Bewolf
Nothing new, however, those numbers are not that much higher then ten years ago. Just the attitude towards it changed. Italy in 1999 had a much higher debt then today, for example. Nobody was bothered about it. And that is why this whole finacial hokus pokus is such a pervert affair, it's pure psychology, defined by speculators and rating agencies. Has nothing to do anymore with any kind of laid out rules or fixed margins. A simple rumor can decide about the solvency of entire countries now.
That said, I personally, and to be clear, I speak here for myself only, as a german I rather pay and try to make the EU work then drop back to the times of european national states with all that implies.
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Eloquently put as usual, I totally agree with you Bewolf.
It's all media scare, they change the size of exchange currencies (selling debts for instance), but it will sort itself out,it's in everybody's interest. The only important aspect is understanding what the next exchange currency will be before the others get at it.
Historically we've been in far worse scenarios, and don't get scared by trillions of dollars in debt,because it's all proportional to your GDP, it's not that we're more in debt today than 20 years ago,it's only inflation caused by capitalist market.
To make it simple: a bag of crisps was 5p 20 years ago,today it's 70p,but it's all proportional to the changes in the costs of life,same rule applies to debt.
Truth is that we're ALL on the same boat: if Europe and USA go down,so will China and India,cos they wouldn't have anybody to do business with.
We've been mostly ignoring the exponential growth of India and China,the cause being that markets move way faster than public opinion.
It's a very large and complex topic (I just got out of a 2 days' conference on it!),but fascinating nonetheless
