The debt ridden economically masterminded struggle is not the chief focus of the money men today. So what is? One could argue it’s about getting the balance sheet straight? Wrong, here is the dilemma.
There are millions of people all over the world who are living on, or are close to the bread line. If every country paid back what it owed to whomever it borrowed from, the interest market would fold up and that would cause a downturn in the economy because, the interest rates are like the cream on the top of a bottle of milk. You remove the cream and you lose what it can produce. Where would you put the cream, or interest payments then? They would evaporate and that income would mean millions, if not billions of dollars not being made, so the economy would shrink because those funds have disappeared.
So what to do then? Here is an option. Across the world people are losing their respective incomes because the global economy is in tatters. So let us assume this was real. Planet Mars has a bank of Martian money, lets call it The Bank of Mars. Planet Earth would want to borrow money from it if that were possible. I wouldn’t be surprised if the Martians made water tight contracts to make sure their lending was financially sound.
Here is something to ponder over. Who would assume responsibility for the loan or loans? Which World Leaders would arrange it and at what price? The Martians would want the interest paid too would they not? Bah, there is always a catch. I expect some other world leaders would like to think they would be consulted and included. Others might just hide under a rock as the world enslaves itself to the Martians.
The world economy is what it is, a shambles in the eyes of the ordinary person but to financiers the world over, it is nothing more than a game of tactics. Who can manipulate the interest rates the best and squeeze out the extra dollar to make a fast buck?
Lets try another tack then. Let’s suppose that some of the worlds bigger banks arrange devices that can work in-house whereby they can shift the interest rates around to make one market look poor for a day or two to elevate those same rates on another so that every bank plays with a loaded deck of cards. They all pay less interest to each other but charge it to the customers at a higher rate to offset the losses. Of course, they’ve done that already.
Now the next thing is, they have to pay back all the miss sold products to the buyers and will do everything they can to get out of that because, it lays bear their wheeling and dealing to the very people they tried to hid it from.
So whose hand, metaphorically, was in the biscuit tin when mum walked through the door?