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I don't really get the meaning of debt on a global scale. If I have have $1, it means someone owes $1. That's what money is. On a global scale, money is worthl
by GuB-42 4y ago
I don't really get the meaning of debt on a global scale.
If I have have $1, it means someone owes $1. That's what money is. On a global scale, money is worthless, it only has meaning on a local scale, as a way to keep tabs on who owes what.
So an increase on global debt can mean that there is more money in circulation, i.e. inflation, essentially a tax collected by those who print money. But inflation was rather low during the pandemic, so probably not that.
If it is not inflation, then it means that more people owe more to other people. So, more interdependence. I wonder if it is a good or a bad thing. Probably both.
- atlantic 4y agoInteresting perspective. How about the fact that money is owed across time - by present generations to future ones? Viewed in that sense, debt surely remains impactful, even if considered on a global scale.
- anononaut 4y agoYou're missing the most defining feature of fiat currency: If you have $1, it means someone owes $1 plus interest. It's a particularly profound distinction and one that should alter your rationalizations and conclusions. On a global scale, it isn't meaningless.