AI contributes to inflating global debt, already approaching $346 trillion or 310% of GDP

Comments

• null@lemmy.org ⁨2⁩ ⁨weeks⁩ ago

  Well, at least a small handful of people might make a few bucks.

  source

  • edgemaster72@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

    Image

    source

    • Gormadt@lemmy.blahaj.zone ⁨2⁩ ⁨weeks⁩ ago

      With each passing year this comic ages more and more like wine.

      source
  • pdxfed@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

    No, those people already did. They have transferred the grift into houses, retirements, and change the course of the future for themselves and their families.

    Everyone else gets to pick up the pieces for their deceit, exaggeration and stupidity.

    source

    • jj4211@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

      Sure about houses, but retirements are balances built upon the expectation that debt continues to grow and remains serviceable. If the debt is a problem, retirement accounts go poof

      source
• obinice@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

  Which planet do we owe the money to?

  source

  • panda_abyss@lemmy.ca ⁨2⁩ ⁨weeks⁩ ago

     ever wonder why why we stopped talking to Pluto?

    source
  • WanderingThoughts@europe.pub ⁨2⁩ ⁨weeks⁩ ago

    Future Earth of course. We’re paying that down for the next century like bad student loans.

    source
  • Aceticon@lemmy.dbzer0.com ⁨2⁩ ⁨weeks⁩ ago

    Mainly the poorer owe that to the richer.

    Also the richer owe that to each other.

    The last part could sorta be unwound in a more or less peaceful way (though very interventionist and the amounts involved are so large that we would see an ever worse explosion of corruption than so far), but the first part would require a Revolution that tore down all existing ownership structures.

    source
  • captainlezbian@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

    This one but in the now/future. Basically a lot of money was printed to pay for things but in order to not cause inflation we had to create debt to destroy that money in the future.

    source
  • boonhet@sopuli.xyz ⁨2⁩ ⁨weeks⁩ ago

    Honestly it pretty much gets generated out of thin air to start with and then everyone further loans the same money around to eachother.

    source
  • Goodlucksil@lemmy.dbzer0.com ⁨2⁩ ⁨weeks⁩ ago

    We owe it to each other, or to the oligarchs.

    source
• Aceticon@lemmy.dbzer0.com ⁨2⁩ ⁨weeks⁩ ago

  Just remember that every year the World’s Economy has to grow enough to cover the interest rate payments in all outstanding debt.

  There are two ways to offset this:

  • Reduce the amount of outstanding debt.
  • Lower interest rates (which is what was done after the 2008 Crash, leading to the slowest recovery from a Crash in at least a century) so that for the same amount of debt there is less interest to pay.

  Overall debt is increasing as per the article.

  Interest rates are below historical average since what was done after 2008 which was supposed to be temporary wasn’t fully wound back, so there’s a lot less room there for central banks to do something about it.

  Actually solving the underlying problems behind the 2008 Crash was pushed to the Future with some interest rate engineering, and it looks a lot like The Future Is Today, and this time around rather than just an over-indebtness plus Finance overextension problem, we seem to have over-indebtness, a massive Tech bubble (like in 2000) AND asset price bubbles in all manner of asset classes, from economically peripheral things like crypto to core things like housing.

  I’ve been expecting a massive crash since I saw what passed for a “solution” back in 2009-12, but shit is turning up to be way worse than I expected due to all the additional resource malallocation and mispriceing in the Economy.

  source

  • merde@sh.itjust.works ⁨2⁩ ⁨weeks⁩ ago

    thanks for that comment

    what did you study to be able to trace these?

    source

    • Aceticon@lemmy.dbzer0.com ⁨2⁩ ⁨weeks⁩ ago

      Almost a decade in Investment Banking and I started reading a lot about Economics (from books, not random websites) after the 2008 Crash to try and understand what the fuck had happenned and what was being done about it.

      That said, take what I wrote with a large pinch of salt, especially the first part which is an idea that I have of how that part of things work (based on Mathematics and Finance industry knowledge), not a proper peer reviewed theory from Economics.

      source
• JensSpahnpasta@feddit.org ⁨2⁩ ⁨weeks⁩ ago

  And everybody who invests such money wants it back. With interest. They are currently trying to shove it everywhere, integrate it into workflows and the skillset of everybody and then they want all this money back and more.

  source
• fizzle@quokk.au ⁨2⁩ ⁨weeks⁩ ago

  This is great news. I mean as long as the lines keep going up right?

  source
• vane@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

  Concept of money is only applied to poor people. Rich people just take couple million dollars loan that they write off in taxes.

  source

  • Eximius@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

    Kinda correct. Money is only useful in trading. You should never store wealth in moneys (because inflationary fiscal policy that only fucks up the lower class)

    source
• frunch@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

  Oh man, we owe the globe a lot these days 😅

  source
• HubertManne@piefed.social ⁨2⁩ ⁨weeks⁩ ago

  More and more I think any correction is going to be a collapse of the bond market which is the thing that kept the great depression from being any worse.

  source