Originally posted by Hobosapien
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Not necessarily. When no one is interested in paying back the debt only servicing the interest then as long as interest rates stay manageable the 'solution' can roll on for ages. They'll just try to deflate the debt by reducing the value of the currency it is held in.
See the USA and how they keep rolling on their national debt obligations. UK are just doing the same. No intention of paying back the debt, just need to avoid drowning under the interest charges. Same applies to consumers on easy mortgage rates and leasing for other things like cars.
So may as well spend spend spend. Worse that can happen is you have to declare bankrupt and they take the shiny stuff away, but unless things have changed very recently there is no desire to repossess houses due to bad mortgage payments, all part of the 'solution'. After a few years of being bankrupt can start again from a slightly worse off position credit wise.
See the USA and how they keep rolling on their national debt obligations. UK are just doing the same. No intention of paying back the debt, just need to avoid drowning under the interest charges. Same applies to consumers on easy mortgage rates and leasing for other things like cars.
So may as well spend spend spend. Worse that can happen is you have to declare bankrupt and they take the shiny stuff away, but unless things have changed very recently there is no desire to repossess houses due to bad mortgage payments, all part of the 'solution'. After a few years of being bankrupt can start again from a slightly worse off position credit wise.
Initially people will feel like wage slaves. Then enough people will borrow with no intention of repaying. It will take in generation. In the meantime, party on Wayne. Paryy on Garth.
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