Global cash crisis! We hear this screamed from headlines and news channels every day, but to the layman the language used is so confusing, it becomes lost in a meaningless gobblygook of deficit, and spending to return ratios, a concept for most of us that muddies exactly what is happening in terminologies beyond our normal understanding.
Let us speak plainly about world debt so we can perhaps learn by the lessons put before us. The more we spent – with offers of buy now pay later or interest free credit – the more in debt we became to banks and money lenders! To continue funding our drive for more and more credit the banks had to borrow from each other until they too ran out of money. Now a country can not survive without a stable banking system so in steps the reserves, lent to banks by governments to strengthen the deficit until these too ran dry. The only option left to countries was to borrow from other countries like a flue virus it was airborne! Now every country on every continent in the world is in debt!
So what can we do about this crisis? We could turn to charts and graphs and analyze the hell out of the problem until it becomes so vast and incomprehensible that we will end up analyzing the analyzed, or we could just simplify it all in ways we can understand.
Lets pretend each country is a person, and we have ten people owing each other money! The first thing to do is work out who owes what to who. We might find that number one person owes number two, and number two owes number three who owes money to number one, then it becomes a closed system where everyone is waiting for the first person to pay up so they can pass the money on to whoever they owe, a little like three people being locked in a room with a flue bug and passing it around forever without end. Like passing the parcel around and around, holding it for a moment and feeling rich but then having to hand it over to the next person, an endless circle of “I am owed what I also owe!”
How can we break this system? How about just saying? “Look you owe me, I owe him, he owes you, lets forget it and get back to making money!” It has been done before, many countries have been in debt to us, and others, and for concessions or trade agreements we have wiped the debt to move forward, we just need to talk to each other.
The only real problem is in the possibility that we all have ended up borrowing from the same person! If this is the case then we would all have to pay this person back, making us weaker then we already are, and them stronger, but that could never happen because especially in the world of finance, being the only lender creates a little thing called monopoly, and after all that is illegal!