Crazy question about money

[scootr]

Ironically China holds the majority of our debt. People talk about just taking the economical cost of the pandemic off our bill.

That's not correct. See: https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124

As of December 2019, the US national Debt was $23.1 Trillion of which 74% of US debt is held by the US public, and of the remaining 26%, Japan is the largest holder with $1.15 Trillion and China with $1.07 Trillion. The UK holds $336.2 Billion.

Thank you for the correction.

 

[exdos]

Thank you for the correction.

My pleasure. BTW I agree with your earlier point in this thread because it's the savers who hold the 74% of the US debt (and similar in other countries) who would suffer in writing off debt which is held by their pension funds and other savings investments. We've already paid for the crash of 2008.

 

[john-e89]

Ok anyone want to answer the question then... :lol:

What would be the problem in printing enough money JUST to bail out the current expenses of the virus and putting us back where we were in December..? It doesn’t devalue the pound and would pay off the final debt, keeping as many people in business as possible. I get it sounds unfair in some areas, ie, the guy down the road is forced to close his car speaker shop, spend 5 months in the garden and gets bailed out whereas the guy up the road keeps his food shop open, keeps working and gets nothing, but the car speaker guy didn’t do anything wrong and had his hand forced so no problem in my eyes.

It’s a very very simplistic view but what is wrong with the basic idea..?

 

[NickDE]

IF the worlds leaders of as many countries as possible could somehow get together in a world conference, what would be the problem of just this once printing money to get the status quo back once there is a vaccine..? Forget logistics for now it’s the theory of it I’m asking about. I mean if this can’t bring the globe together to write the debt off then what will..? Also it speaks volumes about global warming too that if we can’t speak together over this we’re stuffed over warming. Obviously it’d be damn near impossible to through to crackpot dictators etc, but surely if enough, and it would have to be as many s possible obviously, would agree would it be feasible to pay ourselves out of this..?


Bit naive I know..... :roll:

You mean countries work together ? We voted against that kind of soft thinking.

 

[exdos]

So where do you stop with this idea? Every time a country suffers a natural disaster does that country make financial correction in the aftermath?

 

[john-e89]

IF the worlds leaders of as many countries as possible could somehow get together in a world conference, what would be the problem of just this once printing money to get the status quo back once there is a vaccine..? Forget logistics for now it’s the theory of it I’m asking about. I mean if this can’t bring the globe together to write the debt off then what will..? Also it speaks volumes about global warming too that if we can’t speak together over this we’re stuffed over warming. Obviously it’d be damn near impossible to through to crackpot dictators etc, but surely if enough, and it would have to be as many s possible obviously, would agree would it be feasible to pay ourselves out of this..?


Bit naive I know..... :roll:

You mean countries work together ? We voted against that kind of soft thinking.

True but there wasn’t a global pandemic then. I’d kinda hope the bigger picture could be looked at just for once.

 

[john-e89]

So where do you stop with this idea? Every time a country suffers a natural disaster does that country make financial correction in the aftermath?

Why not if it just pays for the disaster alone..? That’s what I’m asking John. Clearly there’s a reason but what is it..?

 

[NickDE]

What would be the problem in printing enough money JUST to bail out the current expenses of the virus

I haven't heard the government give any indications of where the money they are handing out right now will come from. And we were told there is no magic money tree. So that means your suggestion is exactly what they are doing, just not telling us.

 

[exdos]

Why not if it just pays for the disaster alone..? That’s what I’m asking John. Clearly there’s a reason but what is it..?

Thus far the African continent hasn't been much affected, and hopefully it escapes: do we help them to write off their debts everytime there's a humanitarian crisis. So why should we?

Just asking

 

[john-e89]

What would be the problem in printing enough money JUST to bail out the current expenses of the virus

I haven't heard the government give any indications of where the money they are handing out right now will come from. And we were told there is no magic money tree. So that means your suggestion is exactly what they are doing, just not telling us.

The thought had crossed my mind hence the question in the first place. Makes sense to me but seemed too simplistic.. :lol:

I’m sure I’ll get corrected quite soon though but I’d really hope it was that simple.....ish.

 

[john-e89]

Why not if it just pays for the disaster alone..? That’s what I’m asking John. Clearly there’s a reason but what is it..?

Thus far the African continent hasn't been much affected, and hopefully it escapes: do we help them to write off their debts everytime there's a humanitarian crisis. So why should we?

Just asking

I get it can’t be done country but country by, say, us, but why not the majority of the civilised world just for once pay ourselves out of this as a collective..? It’s a global pandemic, not confined to regions or country’s being badly run by crackpots.

 

[john-e89]

Anyway instead of asking me questions tell me the bloody answer....! :lol:

 

[exdos]

I get it can’t be done country but country by, say, us, but why not the majority of the civilised world just for once pay ourselves out of this as a collective..? It’s a global pandemic, not confined to regions or country’s being badly run by crackpots.

This last week the EU of just 27 member states couldn't agree to fully assist it's 2 most affected members (Italy and Spain) by the Coronavirus with its European Stability Mechanism and this organisation were supposedly showing solidarity only 4 months ago. So what chance an agreement with totally unconnected nations? There's your answer

 

[john-e89]

I get it can’t be done country but country by, say, us, but why not the majority of the civilised world just for once pay ourselves out of this as a collective..? It’s a global pandemic, not confined to regions or country’s being badly run by crackpots.

This last week the EU of just 27 member states couldn't agree to fully assist it's 2 most affected members (Italy and Spain) by the Coronavirus with its European Stability Mechanism and this organisation were supposedly showing solidarity only 4 months ago. So what chance an agreement with totally unconnected nations? There's your answer

It has done now though.

 

[john-e89]

Anyway yes as I said a very simplistic question which is so incredibly sad that it won’t happen, hence why we're screwed as a civilisation over global warming I think as nothing will be learned form this before it’s far too late. Damn I hope I’m wrong.

As far as our own country is concerned I think maybe we are printing money, it’s just not being said.

 

[scootr]

The US politicians are trying their hand at this - They are printing 3 trillion dollars and tagging it on to the national debt. Which I just found out I own. So I put in for my pittance and shoulder my debt. Great
I guess what you are saying is print up the money - give it out and never record it so the pound does not get devalued? I think if you did that the market would self correct. I think prices would go up as they always do when there is money about resulting in inflation which basically devalues the currency.
But I could be wrong - I was a few posts ago when I balls upped the US debt ownership.

One of the big problems I see with this shutdown is people living week to week or month to month who really can't look after themselves.

 

[john-e89]

The US politicians are trying their hand at this - They are printing 3 trillion dollars and tagging it on to the national debt. Which I just found out I own. So I put in for my pittance and shoulder my debt. Great
I guess what you are saying is print up the money - give it out and never record it so the pound does not get devalued? I think if you did that the market would self correct. I think prices would go up as they always do when there is money about resulting in inflation which basically devalues the currency.
But I could be wrong - I was a few posts ago when I balls upped the US debt ownership.

I’m being much more selective than that Scootr, it’s purely to pay for the medical equipment, furloughed jobs for a few months, small business etc, until we’re out of this. I doubt that would have any or much impact on prices and inflation.

 

[Nictrix]

How about the billionaires of this world dig deep and end world poverty. They could if they wanted to and still be stinking rich.

 

[exdos]

hence why we're screwed as a civilisation over global warming

For many reasons Homo Sapiens is the worst species ever to set foot on this planet and that includes pandemic viruses. A strong statement but true. :thumbsdown:

 

[buzyg]

They seemed able to print enough money to prop up the banks so can’t see why they can’t do the same again to get the country back on its feet.
Rob

My thinking Rob, just pay off the debt this virus is incurring only and away we go as before. I can’t see why just paying that off would de-value the pound as long as it’s not taken any further than the virus debt only. :scratchhead:

They are printing it. They said that right upfront. They describe it as fiscal easing. :wink:

Each economy will require different amounts. Therefore the exchange rates between them will alter as a result. Inflation is a usual result of such measures if run for too long, though this situation will undoubtedly require some new modeling to predict the outcome.