Addiction to debt

[BrilloPad]

Does Japan not have debt?

Only to its own citizens. Which is why its not really a problem - like Italy.

[speling bee]

Only to its own citizens. Which is why its not really a problem - like Italy.

So what will happen as its aging population starts to cash in their saving bonds in retirement?

[scooterscot]

Only to its own citizens. Which is why its not really a problem - like Italy.

Ahh but Italy has much more wealth that the UK. Twice the gold reserves and many assets that remain in Italian hands. No selling off the crown jewels to shareholders & hedge-funds.

[CoolCat]

Its not just debt.

As a country our leaders are also showing an addiction to mass immigration and pushing for low wages commodity economy. No concept of aiming for the high value, high innovation, high quality end of the spectrum just constantly driving costs down. And employers subsidised in their low wage frenzy with top up benefits, tax perks for employing foreign nationals instead of Brits, etc.

An addiction to hyping house prices.

An addiction to QE.

And all the rest of it.

Its not going to end nicely.

[BrilloPad]

So what will happen as its aging population starts to cash in their saving bonds in retirement?

Little boy

[tomtomagain]

If you don't have debt then you cannot have "saving".

If you don't have saving then you cannot have investment.

If you cannot have investment you cannot have growth.

There is nothing fundamentally wrong with debt.

[SpontaneousOrder]

There is nothing fundamentally wrong with debt.

Agreed. There is a lot wrong, though, with a system where money exists (by design) only as debt - i.e. a pyramid scheme.

[darmstadt]

I once got lost in Elephant & Castle and found myself on the Old Kent Road. Thanks to Monopoly, it was oddly reassuring; a vague sense of "Well at least it's somewhere I know" even though I'd never been there before

I once worked at the Elephant & Castle as above the shopping center the DHSS (thats how long ago it was) had a computer center and it was notable for a few things:

- the snooker room was built out the back of the computer room, which was handy
- the breakfasts in the canteen were the bollocks
- our department was nearly all contractors starting with the pig ignorant high earning EDS consultants at the top to the high earning (payment was by cheque in those days) techies at the bottom with a sprinkling of civil servants in between who were all pretty damn good at their jobs
- it was piss easy
- the bookies below our office where afternoons were spent betting on the dogs although you had to be careful sneaking down there as the offices all looked down on the shopping center
- watching the weekly muggings in the shopping center from above

[Zero Liability]

If you don't have debt then you cannot have "saving".

How do you figure? You can save without going into debt. Where do you think debt comes from without central bank funny money? Or credit, rather.

[BrilloPad]

I wish AtW was here to tell us the right answer.