Quote:
Originally Posted by WarpSpider74
Thanks, now my head hurts  |
It's simple
And now, they're (those bailing out these economies) going to go to their reserve banks and the WMF to borrow money which doesn't really exist because it's actually the nominal value of the principle of loans (which never existed in the first place) that were made before to governments, that has been reinvested to make "more money" which has no real value except as a notional amount assigned to it by a computer (so it's really just 0's and 1's), and they will use this funny money to bail out these other economies.
It's like giving someone a present in a box wrapped up in many layers of wrapping and the box is ultimately empty, but in this case even the wrapping and the box are fake.
That's how the world's economy is run. It's run on the basis that being in debt is the way to do things and even there, the actual debts are illusions. If truth be known, they have only fraction of the money they need, in real physical money and commodities, to back their economies up. If the world's economies were ever called to really account for their debts and such, they could never do it. Their economies would immediately collapse. It's only held together by figurative "duct tape and Clag paste" as it is.