This continues on from a previous article I published earlier this month:
In that article, I touched on personal debt, and credit issued by banks in the form of loans.
Similar principles apply for businesses, and other forms of credit arrangements.
But on a much bigger scale, countries and their govenments are also heavily in debt.
The whole world is in debt, but who do we owe this money to?
Strangely its hard to find an exact answer to this question, almost like the truth is being covered up…
You’ll often see governments making spending pledges, after all taxpayers’ (public) money is used to fund public services etc. But most governments’ budgets are running at a deficit, in other words there isn’t enough taxpayers money in the kitty to pay for public services and/or fund new infrastructure projects.
When this is the case, you’ll hear government officials talk about “borrowing” money, for example to fund a pay-rise for public sector workers, or to build new hospitals, etc etc.
Most people are completely in the dark about from whom this money is being ‘borrowed’ though.
Now unlike yourself when you want to buy a new home, it’s not the case that the government pops into Barclays Bank and asks to borrow £56 billion so they can build a new railway.
There are many layers to banking operations, from the ‘high street’ banking names, to the bigger investment bankers, as well as ‘Central Banks’ (such as the European Central Bank). Going upwards from this there is of course the Bank Of International Settlements (BIS), the International Monetary Fund (IMF) and the World Bank.
The principle is almost the same, though instead of banks adding ‘credit’ to your personal or business account, when governments ‘borrow’ money it is done in the form of ‘bonds’.
The money still has to be paid back though, and with ‘interest’ added of course. And who has to pay this money back? You probably guessed correctly, its us mugs, the public, and this is done through more taxation. The debts will take years to pay back though, so the ‘burden’ gets passed on down through the generations.
This ‘new money’ is still theoretically being conjured out of thin air, and who benefits? As well as the establishments mentioned already, the rich banking families that own and control them. (Rothschilds et al)
I remember reading a book a while back, and I can’t remember the name of it now, but it described what happens when countries/governments go ‘bankrupt’ and default on their debts, namely assets get seized and sold off in order to recover the debt. You’ll have heard this referred to as ‘privatisation’, whereby state/government owned and controlled assets get sold off (usually on the cheap) to private companies/corporations, who then take them over and run them as profit-making businesses.
Think about what happens when your home gets ‘repossessed’ by the bank after you default on your mortgage payments – the bank seizes your asset, clears down your debt, and then sells your property off via auction to the highest bidder – but on a much grander scale.
Global debt is borrowing by governments, businesses and people, and it’s at dangerously high levels.
In 2021, global debt reached a record $303 trillion, according to the Institute of International Finance, a global financial industry association.
This is a further jump from record global debt in 2020 of $226 trillion, as reported by the IMF in its Global Debt Database. This was the biggest one-year debt surge since the Second World War, according to the IMF.
“What does ‘global debt’ mean and how high is it now?” – World Economic Form, May 16th 2022
The whole world is heavily in debt, and the more that the global debt increases, the less the chance of any of this debt ever being paid off, especially if interest rates increase dramatically.
Because there simply isn’t enough ‘actual’ money in the world. This is all ‘fictional’ money created out of thin air, but owed to shadowy hidden figures who own and control the world’s central banks, and are becoming incredibly wealthy at the expense of everyone else.
If the whole world suddenly ‘defaults’ on its debts, what do you think would happen?
