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A comment on Strange Things That Have Been Happening in Financial Markets. Parent comment

Re:Strange Things That Have Been Happening in Financial Markets by digi_owl on Saturday November 14, 2015 @02:29AM (#10564858)
Likely not intentionally so, but it is effectively a game of hot potato with debt. Someone, somewhere has to be constantly taking on more debt to ensure the whole system keeps going.
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Re:Strange Things That Have Been Happening in Financial Markets by eru on Saturday November 14, 2015 @06:09AM (#10565280)
Why? Why is eg constant debt not sustainable?
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Re:Strange Things That Have Been Happening in Financial Markets by digi_owl on Saturday November 14, 2015 @07:46AM (#10565474)
Money spent on debt servicing is money not spent on goods and services.
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Re:Strange Things That Have Been Happening in Financial Markets by derriz on Saturday November 14, 2015 @09:25AM (#10565756)
Why? What happens it? It gets buried in a hole?

The money you spend servicing debt is the money somebody else earns on their savings. And many people (retirees are an extreme example) happily spend such money on restaurant dinners and new cars.

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Re:Strange Things That Have Been Happening in Financial Markets by digi_owl on Saturday November 14, 2015 @10:00AM (#10565869)
If only it was so.

http://www.bankofengland.co.uk/publications/Documents/quarte...

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Re:Strange Things That Have Been Happening in Financial Markets by derriz on Saturday November 14, 2015 @01:22PM (#10566622)
Could you simply respond to the point? I already understand how modern central banks work so a reference to a 14 page intoduction doesn't help.

According to your claim, debt interest just disappears while i know for a fact that it does not since i've used such money myself (earned on my savings) in the past to buy stuff.

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Re:Strange Things That Have Been Happening in Financial Markets by digi_owl on Sunday November 15, 2015 @03:41AM (#10568958)
Earnings on savings are independent of debt repayments.

If you look at page 3 of the document, it talks about how repayments are basically an accounting alteration of the debtors deposit account.

Meaning that said account is reduced by the mount paid, but does not show up with a matching increase on any other account ledger (the banks own or any other).

Debt and savings are wholly uncoupled, no matter what mainstream economics likes to think.

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Re:Strange Things That Have Been Happening in Financial Markets by eru on Sunday November 15, 2015 @03:46PM (#10571108)
The central banks pay out profits earned to their respective governments.
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Re:Strange Things That Have Been Happening in Financial Markets by CyberDildonics on Saturday November 14, 2015 @01:39PM (#10566676)
It depends on the amount of debt. Complex things like this cannot be condensed into black or white simplistic answers.
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