FalloutJack said:
[HEADING=3]And so, with very little discussion content from the OP, I would like to switch topics to recessions.[/HEADING]
Because I have been looking at these things where everybody owes everyone else in a massive cluster-flux worse than seven fishing rods tangled with each other, and I have to wonder...why can't we just roll shit back? Alot of the money owed is numbers only, data not hard currency. Is there no way to develop a program to list all the debts and financial snares, find a common denominator, and roll everyone down to a more managable number while at the same time keeping it all equal?
(Basically, I'm trying to ask if payment can't just be handled mathematically in accordance with what everyone owes everyone else.)
I have a feeling interest rates play a part in this? (Question mark to indicate I know I'm on shaky ground here.)
Let's have a shaky-example-I-just-thought-up!
Starting situation:
> America owes Bosnia £30 and pays 5% annual interest.
> Bosnia owes America £50 and pays 1% annual interest.
Situation after "rolling down":
> America owes Bosnia nothing.
> Bosnia owes America £20 and pays 1% annual interest.
Has Bosnia lost money? America has stopped paying any interest at all, while Bosnia is still paying interest on their remaining debt. Would Bosnia be in a better position if they stayed in greater debt to America (at the lower interest rate) in order to rake in the higher interest rate on America's debt to them?
Or - if my guestimation skills are lacking - can the above numbers be adjusted until it
is true that one country loses out?
(New thought: Why on Earth was
Bosnia the first country I could think of beginning with B?)
EDIT: Numbers were inconsistent when I first posted.