Global economic collapse, or not?
Imagine if there’s someone who spend more than what’s earned, maybe spending 4 tirllion when they only earn 2 trillion.
In order to support the spendings, one will have to borrow, signing on loans that’s called bonds.
With this, one gotta pay interest.
But as you borrow more and more from familes, friends and outsiders, the first loan followed by the second to support the first and it continues...
They adds up to about 14 trillion which is the total income possible for the whole year of this person combined.
The sum of money is so large that this person will soon have no one to borrow money from.
This person will soon run out of money.
There’re two choices:
1. Cut spending.
2. Increase the payment of others towards him.
If he cut spending, the people who he spends money on will blame him for spoiling the economy for not letting them spend.
If he increase the payment of others towards him, people will not just blame him but go against him as well.
It’s a lose-lose situation.
So maybe, if possible, like magic, print more money.
But the problem arise, ignoring it being illegal.
By having more money, it means that these money will become worthless as the production of goods output is not matching up with the amount of money printed.
It’s like if there’s ten of me and each in one planet,
Compared to there’s only one of me in the universe,
Compared to there’s only one me for a limited period.
Which is why, I’m priceless \(^.^)/
This will lead to inflation.
Imagine if I were to lend you money, it will make you look richer because I will get to spend less but you’ll get to spend more.
In this way, I’ll be working more and will be willing to take just a small sum of money.
If you are a company, you will be more than willing to hire me and allow me to do your production.
This contributes to a recession whereby you will stop hiring people of your kind.
People who you are taking care of will continue to spend and collect money but will no longer be contributing to your expenditure.
So this someone will have even lesser income but more expenditure.
As written above, there’s inflation and now, there’s recession.
Inflation + recession = stagflation
So what can this person do?
This?
This?
Or this?
Apparently, I dont think they would work, or would they?
One day, when this person is no longer able to pay the bills...
His familes... like organizations or compaines will collapse...
His friends... like your neighbouring countries or countries will fall together...
Outsiders... like world bank...
Or will they?
Will it be a chain reaction?
Where people get jobless...
Companies shut down...
And result in a global economic collapse?
Oh well, I’ve even yet to reach the legal age of 21, and it’s past 4am?
In order to support the spendings, one will have to borrow, signing on loans that’s called bonds.
With this, one gotta pay interest.
But as you borrow more and more from familes, friends and outsiders, the first loan followed by the second to support the first and it continues...
They adds up to about 14 trillion which is the total income possible for the whole year of this person combined.
The sum of money is so large that this person will soon have no one to borrow money from.
This person will soon run out of money.
There’re two choices:
1. Cut spending.
2. Increase the payment of others towards him.
If he cut spending, the people who he spends money on will blame him for spoiling the economy for not letting them spend.
If he increase the payment of others towards him, people will not just blame him but go against him as well.
It’s a lose-lose situation.
So maybe, if possible, like magic, print more money.
But the problem arise, ignoring it being illegal.
By having more money, it means that these money will become worthless as the production of goods output is not matching up with the amount of money printed.
It’s like if there’s ten of me and each in one planet,
Compared to there’s only one of me in the universe,
Compared to there’s only one me for a limited period.
Which is why, I’m priceless \(^.^)/
This will lead to inflation.
Imagine if I were to lend you money, it will make you look richer because I will get to spend less but you’ll get to spend more.
In this way, I’ll be working more and will be willing to take just a small sum of money.
If you are a company, you will be more than willing to hire me and allow me to do your production.
This contributes to a recession whereby you will stop hiring people of your kind.
People who you are taking care of will continue to spend and collect money but will no longer be contributing to your expenditure.
So this someone will have even lesser income but more expenditure.
As written above, there’s inflation and now, there’s recession.
Inflation + recession = stagflation
So what can this person do?
This?
This?
Or this?
Apparently, I dont think they would work, or would they?
One day, when this person is no longer able to pay the bills...
His familes... like organizations or compaines will collapse...
His friends... like your neighbouring countries or countries will fall together...
Outsiders... like world bank...
Or will they?
Will it be a chain reaction?
Where people get jobless...
Companies shut down...
And result in a global economic collapse?
Oh well, I’ve even yet to reach the legal age of 21, and it’s past 4am?
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