Quote:
Originally Posted by ljf12
Search “How come Australia suddenly has billions of dollars to pay for welfare.”
I don’t know how to add a link, it is a news report that talks about pulling cash out of your bum.
Will they ever actually pay it back ?
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That is a very good article, that more people should read and try to understand.
Covid19-how-australia-is-paying-for-welfare
People have often wondered, with every country, producing more and more debt every year, that surely the day of reckoning will come, and the whole world financial system will collapse.
For example the current US national debt is US$24 trillion, and accounts for 70% of debt against their GDP.
Australia currently stands at US$637 billion debt, and accounts for 48% of debt against GDP.
Governments can just keep printing money it seems out of thin air, and seemingly keep doing it, with no questions asked or consequences.
And even inflation can be keep under control while doing this!
Will the Australian government just print the money it needs to cover the $200Billion worth of Stimulus and relief handouts it's giving at this time?
Well, as the article said, "About three weeks ago, on March 19, the Reserve Bank of Australia (RBA) announced it would commence a type of emergency monetary policy action it had never attempted before - 'quantitative easing' or QE".
So Maybe.
So how can the US and other governments around the world just keep printing money?
Well, there's main 3 reasons;
1. As an individual, you can only borrow so much money and are given a limited time to repay it. Like a 30 year mortgage on your house.
Why... Very simply, because your life is finite, and you will die one day, and its hard to collect what you are owed from a dead person.
On the other hand, a government will never die.
It's lives or goes on forever, unless of course a country is overthrown, or the world ends.
The US government will still be here in one form or another, a 1000 years after you and I die.
There is no time limit constraint, to when they can stop borrowing.
2. Money does not really exist.
The total amount of world debt combined, exceeds the total amount of money that is in circulation today. There is not enough to ever pay it back even if everyone wanted to. Money has been created from nothing... (Printing).
3. The World debt is now so great... No one or any financial institution, or country is big enough to ever "call it in" and foreclose or demand it's paid back?
Because in doing so, would cause the entire world monetary system to collapse, and no one wants that.
The 1% of wealthiest individuals in the world that control most of the world's wealth would also no longer be wealthy.
You can only be a billionaire, if your "billions" are worth the "billions" we accept it to be.