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View Full Version : Collective state bankruptcy declared by all nations in agreement.



pZombie
12-01-2010, 12:21
The title says it. What would be the implications of such an act?

It sounds like a nice way to get rid of all debts. The only problem is that you lose credibility. Since however this would happen in agreement with every other nation, the credibility loss would be minimal.


Who would lose in this act? The big central banks for once....


discuss

AAetius Mole
12-01-2010, 12:35
When a country defaults on its debts, like Argentina did in 2002 capital inflows to the defaulting country goes way down as foreigners don't want to invest in a debtor country that has told its creditors in the past to gso.

Here's an interesting Wiki article about the Argentina debt default.

http://en.wikipedia.org/wiki/Argentine_debt_restructuring


Sure you can default on your debts to get rid of them, but if you can't balance your budget from there forward, the country is screwed. Inflation comes to mind.

I'll be graduating from college with a Bachelors degree in Economics and a minor in History later this month :)

Sqarak
12-01-2010, 12:43
I'll be graduating from college with a Bachelors degree in Economics and a minor in History later this month :)

Wow, will you be in for a surprise in the real world.

pZombie
12-01-2010, 12:44
When a country defaults on its debts, like Argentina did in 2002 capital inflows to the defaulting country goes way down as foreigners don't want to invest in a debtor country that has told its creditors in the past to gso.

Here's an interesting Wiki article about the Argentina debt default.

http://en.wikipedia.org/wiki/Argentine_debt_restructuring


Sure you can default on your debts to get rid of them, but if you can't balance your budget from there forward, the country is screwed. Inflation comes to mind.

I'll be graduating from college with a Bachelors degree in Economics and a minor in History later this month :)

Which part of collective and agreement did you not understand?

AAetius Mole
12-01-2010, 12:54
Well since not all countries run debts, take the Argentina example and multiply it by as much as you want, but keep in mind all countries is not an option.

P.S. I currently work for a bank that has not taken any bailout money. I have many employment opportunities within my current employer. My employer is reimbursing my tuition expenses.

yes, the real world, where I'll have even more demands siphoning off my precious Darkfall Time.

pZombie
12-01-2010, 13:06
Well since not all countries run debts, take the Argentina example and multiply it by as much as you want, but keep in mind all countries is not an option.

P.S. I currently work for a bank that has not taken any bailout money. I have many employment opportunities within my current employer. My employer is reimbursing my tuition expenses.

yes, the real world, where I'll have even more demands siphoning off my precious Darkfall Time.

Name the few countries which don t run debts and then check how many countries DO run debts.

The people of a nation certainly do not benefit having to give away a grand part of their GDP away to pay interest they will never get rid of anyway.


The US, Japan, UK, Spain, all nations with high tech, yet all in debt. All this debt is paid by peoples tax payer money. They are working to fill the debts. Rather than to improve the collective quality of life, they end up improving the quality of life of the few criminals which are behind the corrupt monetary system.

Weeking
12-01-2010, 13:23
All nations? If most of the world did, government bonds would be worthless and it would amount confiscating huge amount of wealth from the rich and they might as well do that then.

pZombie
12-01-2010, 13:47
All nations? If most of the world did, government bonds would be worthless and it would amount confiscating huge amount of wealth from the rich and they might as well do that then.

Nah, confiscating their wealth won t get you rid of the interest. State bankruptcy will.

Silverhandorder
12-01-2010, 18:55
If all countries defaulted at the same time all the governments would need to shrink to the point where they bring in no deficit.

Ziegler
12-01-2010, 20:21
I'll be graduating from college with a Bachelors degree in Economics and a minor in History later this month :)

I'd like fries with that please.


and oh...you're a banker...of course you would be against it.

Rachsucht
12-01-2010, 20:54
I'd like fries with that please.


When was the last time anyone here actually said that at a fast food joint? I always have to make sure they don't give me the fries ("just the sandwich").

Ziegler
12-01-2010, 22:12
When was the last time anyone here actually said that at a fast food joint? I always have to make sure they don't give me the fries ("just the sandwich").

hell if I know...I avoid fast food resturants.

Rachsucht
12-01-2010, 22:22
hell if I know...I avoid fast food resturants.

Good for you. I try to, but more often than not I don't bring my lunch and end up having to eat fast food crap, even though I don't even enjoy it that much.

Ziegler
12-01-2010, 22:37
I usually skip lunch at work. I sit at a desk all day, so not enough activity to warrant eating at work. Eat a good home cooked meal when I get home and something of a late evening.