Global debt reset

[Vestbredden]

I have the idea in my head of a global debt reset, that is that all debts between people, organizations and government is whiped clean. And that the economic world started again from scratch. This could be done by declaring all currencies null and void, and then starting again with new currencies.

This won't ever happen ofcourse, unless there is a global catastrophy with the breakdown of most governments, but if it somehow happend with all government in place how would the world be different. New debts would quickly replace the old debts ofcourse, but would the same people, organizations and countries still be ahead?

[Angleter]

No. A large number of large banks would disappear, and the Democratic Republic of the Congo wouldn't believe its luck (until it slides back into massive debt).

[Galiria]

The problem is that debt is owed to someone, and they won't just smile and accept the fact that suddenly all the money they're owned will never be paid.

[Umbagar]

I have the idea in my head of a global debt reset, that is that all debts between people, organizations and government is whiped clean. And that the economic world started again from scratch. This could be done by declaring all currencies null and void, and then starting again with new currencies.

This won't ever happen ofcourse, unless there is a global catastrophy with the breakdown of most governments, but if it somehow happend with all government in place how would the world be different. New debts would quickly replace the old debts ofcourse, but would the same people, organizations and countries still be ahead?

And what would happen to all the people who lended trillions of dollars to governments? Would they get a fancy embroidered note that said "sorry, but our reckless spending required us to change the economic laws and we don't owe you anything under these new rules we designed. Have fun recouping your massive losses!"

[Sibirsky]

The problem is that debt is owed to someone, and they won't just smile and accept the fact that suddenly all the money they're owned will never be paid.

This. You also destroy lenders' trust and risk in a much lower amount being lent in the future.

[Great Nepal]

No.
1. Why the fuck will anyone do that? Sure governments could do it by force but they will need money in future and there will be noone to lend it.
2. What is the objective?
3. I can gureentee you that you will have a massive riot in your hands.

[Northwest Slobovia]

I have the idea in my head of a global debt reset, that is that all debts between people, organizations and government is whiped clean. And that the economic world started again from scratch. This could be done by declaring all currencies null and void, and then starting again with new currencies.

This won't ever happen ofcourse, unless there is a global catastrophy with the breakdown of most governments,

Um, wiping out all debt and currency would be a global catastrophe with the breakdown of most governments. Debt isn't just nebulous evil, it represents work done that hasn't been paid for, ranging from the credit most workers extend to their employers between paychecks to everything governments do when they don't actually have tax money in hand.

[Crabulonia]

What's the actual worth of currency though? The banks will still all claim that they are owed something and unless countries want to go without incurring deficits (probably actually a better idea) then they will need to pay them.

A global debt rest is impossible unless we were to sweep away the entire system of banking and do you know how long that would take to make functional again?

[Wewtlandem]

No. A large number of large banks would disappear, and the Democratic Republic of the Congo wouldn't believe its luck (until it slides back into massive debt).

[Supreme Marshal Petan]

Yeah that would be great. What a lesson to learn! So boys and girls whenever you spend more then you have, just give it some time and the government will clear the debt! Responsibility? What's that?

[Oterro]

No.
1. Why the fuck will anyone do that? Sure governments could do it by force but they will need money in future and there will be noone to lend it.
2. What is the objective?

I assume the OP wants third world debt and such eradicated. I can't see it happening. And I believe the objective is to "reset debt". Pink Floyd tried it and failed.

[Supwer land]

Did you really think about this before you posted? I mean, no offense, but what if I owed you $5, then decided I didn't have to pay you. Would you ever lend me $5 again?

[Wewtlandem]

This would fail for several reasons. Mainly, China would be really pissed off.

[Norstal]

Where do you people get your bad ideas from? Is the OP from Troll Science?

[Supreme Marshal Petan]

Did you really think about this before you posted? I mean, no offense, but what if I owed you $5, then decided I didn't have to pay you. Would you ever lend me $5 again?

I don't think so. He's probably 13 years, a socialist, and has the IQ of Forrest Gump.

[Langorham]

I have the idea in my head of a global debt reset, that is that all debts between people, organizations and government is whiped clean. And that the economic world started again from scratch. This could be done by declaring all currencies null and void, and then starting again with new currencies.

This won't ever happen ofcourse, unless there is a global catastrophy with the breakdown of most governments, but if it somehow happend with all government in place how would the world be different. New debts would quickly replace the old debts ofcourse, but would the same people, organizations and countries still be ahead?

Why not just do away with all currencies? Instead everyone just works and when anyone needs anything they can just go get it. Kind of makes everything and everyone seem a bit more equal, doesn't it? No minimum wage, no executive bonuses, no mansions and no trailer parks. No need for anyone to steal or rob anyone. No one would have more or be more valuable than anyone else. No need for guns and wars. A communal world where everyone works for the betterment of all. Could it work?

[Great Nepal]

No.
1. Why the fuck will anyone do that? Sure governments could do it by force but they will need money in future and there will be noone to lend it.
2. What is the objective?

I assume the OP wants third world debt and such eradicated. I can't see it happening. And I believe the objective is to "reset debt". Pink Floyd tried it and failed.

As for third world Debt... its kind of complicated. Matter of fact is that most of the third world nations are today as third world due to the developed nations (mostly UK and France to be exact). So I would rather say a UN vote. But it wont happen unless world was an uthopia.

[Great Nepal]

Did you really think about this before you posted? I mean, no offense, but what if I owed you $5, then decided I didn't have to pay you. Would you ever lend me $5 again?

Well I would, but I would want your house for security along with paper which says I can sell it for any reason.

[Vestbredden]

Did you really think about this before you posted? I mean, no offense, but what if I owed you $5, then decided I didn't have to pay you. Would you ever lend me $5 again?

It would be like if I owed you 5$, then we both read in the news the next days that a $ is worth zip, nothing, nill. If you did not lend be the fiver then your fiver would still be as worthless as the debt. You would not have lost anything.

[Kylarnatia]

I assume the OP wants third world debt and such eradicated. I can't see it happening. And I believe the objective is to "reset debt". Pink Floyd tried it and failed.

As for third world Debt... its kind of complicated. Matter of fact is that most of the third world nations are today as third world due to the developed nations (mostly UK and France to be exact). So I would rather say a UN vote. But it wont happen unless world was an uthopia.

Define Uthopia in todays terms

But yeah, I know what your trying to say buddy, but everyones right. It just wouldn't work.

[Supreme Marshal Petan]

Did you really think about this before you posted? I mean, no offense, but what if I owed you $5, then decided I didn't have to pay you. Would you ever lend me $5 again?

It would be like if I owed you 5$, then we both read in the news the next days that a $ is worth zip, nothing, nill. If you did not lend be the fiver then your fiver would still be as worthless as the debt.

No, it would be more like you buying him dinner, and him promising to buy the next one. And then saying nevermind, go screw yourself.

[Chrobalta]

The problem is that debt is owed to someone, and they won't just smile and accept the fact that suddenly all the money they're owned will never be paid.

This. You also destroy lenders' trust and risk in a much lower amount being lent in the future.

I agree with Sibirsky.

*waits for apocalypse*

[Great Nepal]

Did you really think about this before you posted? I mean, no offense, but what if I owed you $5, then decided I didn't have to pay you. Would you ever lend me $5 again?

It would be like if I owed you 5$, then we both read in the news the next days that a $ is worth zip, nothing, nill. If you did not lend be the fiver then your fiver would still be as worthless as the debt.

So lets scale it a bit up, since it unlikely anyone will protest for $5. I owe you $4000, Supwer Land owe you $1000, Wewtlandem owes you $5,000, Norstal owe you $9000. Thats total of $19,000. Suddenly you read that all that money will never be given back and its all worthless. So will you say "well its bad but I hope it wont happen again" or go mad and join in/start riot? Or take arm and start an armed revolt?

[Charlotte Ryberg]

The problem is that debt is owed to someone, and they won't just smile and accept the fact that suddenly all the money they're owned will never be paid.

This, and also savings accounts need to be taken into account because if all currencies were reset then savings would be lost.

[Norstal]

Did you really think about this before you posted? I mean, no offense, but what if I owed you $5, then decided I didn't have to pay you. Would you ever lend me $5 again?

It would be like if I owed you 5$, then we both read in the news the next days that a $ is worth zip, nothing, nill. If you did not lend be the fiver then your fiver would still be as worthless as the debt. You would not have lost anything.

When did any of the world's currency lost all of its values? Even if its currency is devalued, the money is still owed. Thank goodness for interest rates.