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Where does all the money come from?

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Well the UK is in debt; so too the USA (apparently partly to the Chinese!) and now, according to a piece by Robert Peston; the Chinese have run up huge debts, that they may not be able to repay !  They've been engaged in the biggest infrastructure building programme since the building of the pyramids, building new roads and railways (forget HS2!); with the three longest bridges in the world; umpteen new airports etc etc.  So, if they're borrowing so much cash; where's it coming from in the first place?

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That has always puzzled me.

Maybe it doesn't really exist as in gold bars and its all just printed paper produced by governments then used untill it runs out then more is printed... ouch ..now my heads aching trying to work it all out..  :blink:

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Always confused me too and if everyone's in debt why don't they just wipe it all out and start again from scratch  :lol::wink:

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It's all just numbers in a computer or ledger. The actual hands on folding stuff does not actually exist it is just the idea of money really.

 

When you use your debit card no actual money changes hands. Your acount has the amount taken from whatever number it happens to show at the time and the vendors account has the same number added to their account.

 

If you want to check that go to your bank and ask them to show you your money in gold bars/bar. Chances are they will either laugh or call the manager who will sit you down and explain that they are not allowed to have gold bullion lying about and that you will have to take it on trust that your money is in fact lodged with them.

 

Basically the same with countries, just bigger numbers that's all.

 

As a thought though, it is odd that they spend so much time and effort to mine gold out of the ground just to lock it in a vault in the ground somewhere.

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Indeed a smoke and mirrors world. Notice the rich tend to invest in "art works", so the whole thing is based on artificial/ abstract values.  As for Robert Peston's report, for those interested, it's on BBC2 9pm tonight.

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Having just watched Robert Peston's report;  one has to be impressed with the sheer scale of Chinese economic expansion, building in less than 10 years an economy that took the US 100 years to develop. However, it's new found dependency on credit and political corruption, would appear to be storm clouds on their future. Perhaps the supreme irony, is the growing gap between the super rich and the rest, which the Communist Party don't appear capable of addressing; maybe, because the Communist "elite" ARE the super rich !  Mau must be spinning in his grave !

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