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Thread: Some of you might find it worthwhile reading to check out this report on World Debt

  1. #1
    Join Date
    Jun 2008
    GTA Ontario Canada

    Some of you might find it worthwhile reading to check out this report on World Debt

    I know this is a woodworking site but many folk dont get to know or go looking at info like this on a daily basis.

    This is one of those must read pieces of info assembled by a pretty credible organization and provides some concerning insight into our new global economy.

    For those that think of China as a major borrower to the US pause for a moment and take a look at this report and get a glimpse of just how bad their debt situation actually is.

    We have seen the videos of empty cities of apartments in China, well what many dont know is that in order to keep investment coming most look at GDP and growth rates of the emerging economies. The thing is few look any deeper and look at what goes into making up that GDP figure. Construction projects are a huge part of that play and create the illusion that things are booming. meanwhile all those construction projects are being funded by debt.

    At some point the piper is going to have to be paid is all i can say. I aint no economist but I just do not see how this kind of scenario continues without serious fallout in our times.

    There is an executive summary as well as full report in pdf to be able to download and read at your leisure if you interested.

    If you want a shorter less detailed commentary by a talking head read the BBC article that was written about this report

    Seems its not just the North Americans that are living beyond their means. I bet many of a grandparents would turn in their graves at what is happening today in terms of debt to be paid by future generations.

    I can actually see time in the future when all the nations gather around the table and just agree to push reset and swap paper with each other.

    I am still trying to get my head around how we go from cold war spending on totally unproductive assets in the form of thousands of missiles, ships, planes etc and then years later find despite having cut all that out we still increasing global debt. Says to me there has been a massive global spend on things that don't produce income and have been funded from borrowed money. Kinda like the 6 million plus my former town spent on refurbishing the hockey arena just to keep people employed.

    All those empty cities in China cannot produce a return without tenants so how does debt get serviced ......or not?

  2. #2
    Join Date
    Feb 2008
    East Freeetown, Massachusetts
    A bit simplistic - but.

    I see it this way.

    First - we are ALL to blame. We ALL want out retirement packages to grow - without any more input from us other than some money. And we want to see something better than 10% growth. Many business owners want to see in excess of 30%

    How can "it" all keep --- GROWING.

    It's kinda like filling a balloon with air. Everybody wants it to get bigger - ignoring the reality that it can only go just so far before it breaks - but we still want it to get bigger.

    And borrowing on the hopes of a better return later. What happens when the balloon breaks. Ohhh YEAH - we know that answer.

    Who is it that said. Those that forget the past are doomed to repeat it?

    Not to get into a religious discussion - but in the old testament times there was the year of jubilee.

    For us - if will be an involuntary year of jubilee - not voluntary at in the old days.

    I like simple - pay off debt - don't carry it - PERIOD

    Can you imagine TV commercials that proclaimed - forget about your credit report - Just Don't use credit - instead SAVE at least 15% of your income - pay cash on the barrel head - no interest payments to worry about at all.

  3. #3
    Join Date
    May 2007
    Thomasville, GA
    My ADD and impatience led me away from the attachment before getting too deep, so take this as you may.

    Leo touched on the solution: "I like simple - pay off debt..."

    In 1992 when LOML and I got together, we were coming out of previous relationships and had some debt to handle. She kept telling me not to worry about it, but I had some baggage I was carrying. Without going into all the gory details, we began to focus on what was really important in life. And that did not include a big house and fancy cars! We use credit cards - wisely! We made a little money when we sold our house in Houston to move to Florida. We bought a nice house in Florida and paid it off in six years. We made enough on the Florida house to pay off everything we've done to our property in Georgia. All along, we've used plastic for many purchases each month and paid it in full each month.

    Why do I go to this level of detail? Each of us has the option to "live big" and show off for our friends with big houses, fancy cars and whatever. If that's what it takes to hold onto "friends", they really aren't friends, if you get right down to it. The important things to us are a well-maintained roof over our head, good food on the table and decent transportation.

    Oh, and while I'm on my soapbox, I'll also say that all my kids are adults and have learned to live their lives. I don't have to support any of them, nor would I. Our approach to that issue is that we made it on our own, now "go ye therefore and do well" on your own. Each of our kids has learned to manage because they must! We have neighbors and other friends who have had kids move back home because they had financial issues. Some of those kids start driving fancy cars while mommy and daddy are providing a roof over their head and feeding them. Needless to say, we don't listen to complaints from those folks!

    Economics are what you make them, in most cases. Yes, the market has its ups and downs and we've ridden those as well. But, we don't rely on that for our existence. Consider what's important to you and don't complain.
    Bill Arnold
    Citizen of Texas residing in Georgia.
    NRA Life Member and Member of Mensa
    My Weather Underground station

  4. #4
    Join Date
    Feb 2012
    St. Catharines, Ontario, Canada
    I don't let it worry me. I'll be dead before it really hits home.

    The other member of Mensa, but not the NRA

    Everyone is a self-made person.

    "The thing about quotes on the internet is that you cannot confirm their veracity" -Abraham Lincoln

  5. #5
    Join Date
    Dec 2007
    Tellico Plains, Tennessee
    There is an old adage that says something to the effect.."You cannot borrow your self out of debt!".... our governments haven't learned this and probably never will.

    I more or less follow Bill Arnold's philosophy... pay off as much as you can when you can... live as close within your means as possible. We carry credit cards, but don't use them much.... one that we are paying on was mostly for medical expenses that we had before LOML became eligible for medicare. One I use strictly for the turning business and it's a level higher than I ever intended it to get, so anything we make on my turnings now goes to reduce that debt.... our house is a very simple little house, about half the size we had in Houston... our car is 17 years old and has been paid off for the last 10 years... just try to keep maintenance up on it and it'll run for another 285,000 miles.

    Our kids all do better than we did when we were working... my son has his own company, a nice house, a nice 3 year old truck and car, and just bought the tail section of an airplane he plans to build.... his company is booming and requires him to travel some, so he's reasoned that besides loving to fly, he can use the plane to take his trips and save time and money (I don't see the reasoning, but it works for him)... my daughter is a high level manager in California... she has a house about the same size as ours, but worth about 10 or 15 times what ours would sell for... she still drives a 6 or 8 year old car.... she thinks long and hard before she spends. My wife's children are all doing well in their own rights... proud of every one of them.

    I do worry some about what the future may bring our children and grandchildren.
    Last edited by Chuck Ellis; 02-07-2015 at 01:34 AM.
    Tellico Plains, TN
    My parents taught me to respect my elders, but it's getting harder and harder to find any.
    If you go looking for trouble, it will usually find you.

  6. #6
    Join Date
    Nov 2006
    Oak Harbor Washington on Whidbey Island
    I mentioned to a Navy service connected friend on the phone last week that I used to ride motorcycles with that I'd like to get back into riding again we talked for about an hour he is in Albuquerque NM. Then over the next few day we exchanged a few E-mails with links to Craig's list about this or that motorcycle.

    He E-mailed have you thought about borrowing the money, getting a loan.

    I wrote back I don't borrow money for vehicles I pay cash & have done so for 29 years. If I don't have enough money I wait until I do. Of course I don't buy new but what I've purchased has served us very well. If & when I purchase a motorcycle I'll pay cash.
    Last edited by Bart Leetch; 02-06-2015 at 11:15 PM.
    "Forget the flat stuff slap something on the spinny thing and lets go, we're burning daylight" Bart Leetch
    "If it ain't round you may be a knuckle dragger""Turners drag their nuckles too, they just do it at a higher RPM"Bart

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