I read the following
“Liechtenstein and Niue are the only two sovereign states believed to be completely free of international debt.”
How can that be?
Surely the international balance sheet has to balance?
If there are countries with a debt, there must be other countries with an equal credit?
I believe there is something wrong with the maths here … can you see what is wrong and how to fix it?
On the same subject,
Consumer Price Index
This shows prices rising by 4 % each month (depending on country) but if each month it continues to rise 12 months at 4 % is that 48% a year or just moving year data.
Uk pensions are based on that % plus some other factors.
UK’s public sector net debt was provisionally estimated at 94.1% of GDP. net debt reached approximately £2,989.9 billion, these are really big numbers and where do we borrow from how can we pay it back and to whom
Like many my biggest debt was buying a house, every month I paid off a little more than I borrowed to try to clear it. Once when I bought a car the dealer talked me in to borrowing money to buy as that was cheaper than paying cash, 0% interest. With a fine if I payed before the end so I had to run it for the full term.
Actually, it gets worse. monthly Inflation for a year is calculated as follows:
Inflation = (1 × 0,04 ÷ 100)¹² = 60,1%
This is also where your CPI would end up.
Anybody know of a better way to get this displayed? Does the LaTeX plugin support formulas?
I had asked AI about the formula as I thought 48% inflation for 12 months of 4% inflation seemed off to me.
It is like compound interest
The formula for calculating compound interest is:
A = P (1 + \frac{r}{n} ) ^{n t}
Where:
A = the total amount after interest
P = the principal amount (initial investment)
r = annual interest rate (decimal)
n = number of times interest is compounded per year
t = time in years
I think @xahodo has it right.
Because it doesn’t include the trillions seating in FatPrivateBancksInc ?
Yes it was incorrect as I wrote it I know the correction but just have it as a simple example
There are many examples of companies buying debts again how do they plan to gain from it. People in debt usually cannot or will not pay.
With countries it functions differently. All of a sudden you have leverage. A country refusing to repay its debts can have quite a painful result on its credebility, which means its rating drops and interest they have to pay on rent increases.
This is the pickle a lot of countries are finding themselves in these days; there is less money for the people, and more for the debt holders, which is a bad situation.
What is that?
The economists are not doing their sums properly … for every debtor there has to be a creditor. Where are the creditors?
You bet it does.
The normal rules of arithmetic do not seem to apply. The earth is a closed system … it is not mathematically possible for every country to have a debt.? Some countries must be creditors … who are they?
They are, they are just not showing all sides of the equation. FatPrivateBanksInc have large funds and IOYs from governments which are almost as good as money
Well do we not deserve to see a proper balance sheet. Are they trying to hide something?
I majored in economics, but I abandoned if because it never made sense mathematically. Too many unmeasurable concepts. It still irks me 60 years later.
It was announced recently that the US is now over 40 trillion dollars in debt!
The interest on this debt come to about 3 billions dollars per day.
Yes, but does it hsve any credits … ie does it lend money as well as borrow it? The 40 trillion is gross debt… what is the net debt?
I find the whole money system crazy. The US could wipe the debt tomorrow by printing 40 trillion in cash and handing it over. So the debt is meaningless. Economics on an international scale is nonsense.
From what I read, the US does not does have any credits from other countries. So the gross debt = net debt. And unlike some other countries does not have any cash reserves.
That’s different to what I read, the Chinese bought the American debt. But that was shown in a UK news site which I have little confidence in.
Maybe I said it wrong when I wrote the US does not have any credits (towards) the US debt. I meant the US does not have any holding of other countries debt to off set the debt it owes (or at least it is a very small amount).
From the web.
77% of the debt is held by domestic holders.
23% held by foreign countries with the 3 biggest being Japan, the UK, followed by China.
That is US citizens lending money to the US government … not international (ie foreign) debt.
Your international debt is only 23% of 40 Trillion dollars… and you know the creditors are Japan, UK, China.
I was only talking about international debt … and credit … if we can find out who is in credit? There has to be a balance if debits and credits at the international level, if the data are not rigged.
and
I am only talking about government foreign debt … private foreign debt should should not be in the international balance sheet because it is not the countries responsibility to repay it.
It almost sounds like you are referring to the old ‘T’ balance table form account class. All the assets (credits) has to equal all the liabilities (debit). It seems national debt does not works that way.
Yes, an old fashioned accounting sheet.
National debt has to work that way … it is a closed system … there is no money hole or money creator at the international level.
I cant find the figures ,… I cant even get google search to understand the question?
What is wrong?