Reply to: How do we end the World's addiction to debt?

[Zero Liability]

Not to mention the huge destruction of capital resources during the wars, but also the release of labour and capital back into the private sector in their aftermath.

[Lightwave]

Wouldn't GDP also have slumped a lot immediately post war? During the war, GDP would be high due to all the war-time manufacturing costs and massive armed forces employment?

I think there was a bit of building work wanted doing....

[Zero Liability]

There is $22trillion in offshore accounts - about the size of the US economy.

Its the only reason that QE has not lead to inflation - the rich have it all stashed away.

It has led to price inflation - asset price inflation. It certainly has resulted in monetary supply inflation.

As for borrowing being beneficial, it is when not heavily artificially subsidised and 'stimulated' by governments and their central banks, which just increase financial system volatility and fragility for the benefit of the few.

[DodgyAgent]

Seems to have taken a big jump in 1914 and 1939. Did anything significant happen in those years?

Looks similar to climate change graphs

[d000hg]

Indeed...

1914 - 1918 was the Great War and the government had to borrow a lot of money and 1939-1945 was the second world war; when Germany invaded Poland in 1939, Britain declared war against Germany. During this period they had to borrow a lot from the USA.

Wouldn't GDP also have slumped a lot immediately post war? During the war, GDP would be high due to all the war-time manufacturing costs and massive armed forces employment?

[MicrosoftBob]

Indeed...

1914 - 1918 was the Great War and the government had to borrow a lot of money and 1939-1945 was the second world war; when Germany and Russia invaded Poland in 1939, Britain declared war against Germany. During this period they had to borrow a lot from the USA.

FTFY

[pjclarke]

Seems to have taken a big jump in 1914 and 1939. Did anything significant happen in those years?

also April 1999 and May 2010 ... ;-)

[BlasterBates]

Seems to have taken a big jump in 1914 and 1939. Did anything significant happen in those years?

Indeed...

1914 - 1918 was the Great War and the government had to borrow a lot of money and 1939-1945 was the second world war; when Germany invaded Poland in 1939, Britain declared war against Germany. During this period they had to borrow a lot from the USA.

[VectraMan]

Compared to the past things aint that bad

Seems to have taken a big jump in 1914 and 1939. Did anything significant happen in those years?

[BlasterBates]

Compared to the past things aint that bad

[pjclarke]

This is on my earbuds right now... recommended.

BBC Radio 4 - Promises, Promises: A History of Debt

[VectraMan]

Only a couple of quid? This is supposed to be a contractor forum.

Can I borrow £100 for swans wings and champers for lunch?

I pay all my taxes; a chicken sandwich and can of lemonade is all I can afford.

[SimonMac]

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[BrilloPad]

Can someone lend me a couple of quid for lunch?

Only a couple of quid? This is supposed to be a contractor forum.

Can I borrow £100 for swans wings and champers for lunch?

[VectraMan]

Can someone lend me a couple of quid for lunch?