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Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it

 
Anonymous Coward
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11/16/2019 08:05 AM
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Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Serious question. The world is a closed system. Assets just don’t evaporate into space. So how can every single country on earth be in debt?

[link to en.m.wikipedia.org (secure)]

In a closed system, if I take a Euro from you, I have a Euro. It doesn’t go anywhere, unless I owe someone else a Euro. If I give it to them, THEY have a Euro. So if money and goods are leaving one country (leaving it in debt like the US is), shouldn’t another country be wealthy from receiving the goods? Even oil rich countries like UAE and Qatar are in debt.

How is it that every. Single. Country. In the world is in massive debt? One country should be massively wealthy if funds were taken from all the countries, right?

Can someone explain it to me?
Anonymous Coward
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11/16/2019 08:08 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Theres a vampire in the room.

Idol1
Anonymous Coward
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11/16/2019 08:08 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
The world-wide debt has been denominated in the U.S.dollars, no so much in other national currencies. Hint
Anonymous Coward
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11/16/2019 08:08 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Think of it like a giant boil... eventually all the goo ends up at the top...
Fluffy Pancakes

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11/16/2019 08:11 AM

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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
It's a shell game run by the banksters.

Central banks make currency from thin air and charge interest on it. It can never be paid back so it looks like it's disappeared.
Things are bad enough, there is no need to make anything up. ~Fluffy

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Anonymous Coward
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11/16/2019 08:11 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
It's a shell game run by the banksters.

Central banks make currency from thin air and charge interest on it. It can never be paid back so it looks like it's disappeared.
 Quoting: Fluffy Pancakes


alien03
Anonymous Coward
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South Africa
11/16/2019 08:13 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Serious question. The world is a closed system. Assets just don’t evaporate into space. So how can every single country on earth be in debt?

[link to en.m.wikipedia.org (secure)]

In a closed system, if I take a Euro from you, I have a Euro. It doesn’t go anywhere, unless I owe someone else a Euro. If I give it to them, THEY have a Euro. So if money and goods are leaving one country (leaving it in debt like the US is), shouldn’t another country be wealthy from receiving the goods? Even oil rich countries like UAE and Qatar are in debt.

How is it that every. Single. Country. In the world is in massive debt? One country should be massively wealthy if funds were taken from all the countries, right?

Can someone explain it to me?
 Quoting: Anonymous Coward 77545963


All countries owe money to their federal reserve banks, who print money out of thin air and then demands interest be paid.
Anonymous Coward
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United Kingdom
11/16/2019 08:15 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Tax havens. Treasure islands. It's all there.
Anonymous Coward
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11/16/2019 08:16 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
The Capos and the Dons extract the money from the system. It is a global racket run by the people in power. You are looking at a criminal syndicate that spans the entire planet.
Anonymous Coward
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Slovakia
11/16/2019 08:17 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Tax havens. Treasure islands. It's all there.
 Quoting: Anonymous Coward 34329598


Bankruptcies are the main debt drain, the corporate or the national ones.
Anonymous Coward
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11/16/2019 08:18 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Serious question. The world is a closed system. Assets just don’t evaporate into space. So how can every single country on earth be in debt?

[link to en.m.wikipedia.org (secure)]

In a closed system, if I take a Euro from you, I have a Euro. It doesn’t go anywhere, unless I owe someone else a Euro. If I give it to them, THEY have a Euro. So if money and goods are leaving one country (leaving it in debt like the US is), shouldn’t another country be wealthy from receiving the goods? Even oil rich countries like UAE and Qatar are in debt.

How is it that every. Single. Country. In the world is in massive debt? One country should be massively wealthy if funds were taken from all the countries, right?

Can someone explain it to me?
 Quoting: Anonymous Coward 77545963


Your completely sane and practical thinking would be correct if we lived in a sane and practical world. However, we don’t. Instead we live in a world where assets are sold many times over and no one owns them (rehypotication). We also have made promises on the future are many times greater than the wealth actually available (pensions, credit..etc) and valuations based on stock buybacks rather than fundamentals.

The result.
We actually have less stuff than thought - rehypotication unwinds.
Valuations drop - stocks valued at $100 are actually evaporated to $40 or less

Then comes the deflation - which is actually a good and healthy part of the overall cycle but the imbalance has become so great that it will be devastating.
Anonymous Coward (OP)
User ID: 77545963
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11/16/2019 08:20 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Serious question. The world is a closed system. Assets just don’t evaporate into space. So how can every single country on earth be in debt?

[link to en.m.wikipedia.org (secure)]

In a closed system, if I take a Euro from you, I have a Euro. It doesn’t go anywhere, unless I owe someone else a Euro. If I give it to them, THEY have a Euro. So if money and goods are leaving one country (leaving it in debt like the US is), shouldn’t another country be wealthy from receiving the goods? Even oil rich countries like UAE and Qatar are in debt.

How is it that every. Single. Country. In the world is in massive debt? One country should be massively wealthy if funds were taken from all the countries, right?

Can someone explain it to me?
 Quoting: Anonymous Coward 77545963


All countries owe money to their federal reserve banks, who print money out of thin air and then demands interest be paid.
 Quoting: Anonymous Coward 78172308


So do the Federal Reserve Banks have multi-trillions of trillions of dollars in their accounts somewhere? Even if money was created out of thin air, the entity that collects it (in this case, the reserve banks) have to store it somewhere, right? What are the balances in the reserve bank’s accounts?
Anonymous Coward
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United States
11/16/2019 08:21 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
YouTube Catherine Austin Fitts. She has the best explanation of anyone.
ScrumpTheTexanModerator
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11/16/2019 08:22 AM

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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it


[link to youtu.be (secure)]
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Anonymous Coward
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Sweden
11/16/2019 08:22 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
In the end, the loans are to private banks.

They've got us by the balls.
BRIEF

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11/16/2019 08:24 AM

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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Credit is the leverage of assets unrealized...
I never forgive and I never forget

I am a licensed firearm holder. I will, under protection of law, use lethal force if attacked.

Briefcut4892
Anonymous Coward
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11/16/2019 08:25 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
US debt is mostly ficticious, because most of it is owed to the Federal Reserve Bank.

If the FED was really federal, then the government can just write off its own debt. The only real debt is debt that is owed to foreign countries.
Anonymous Coward
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11/16/2019 08:28 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Haha dude every money printed has a rate attached to it - that grows over time.

”Rent on rent” principle. Exponentially growing.

Will always be more debt in the world than there is actual money
Anonymous Coward (OP)
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11/16/2019 08:28 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Your completely sane and practical thinking would be correct if we lived in a sane and practical world. However, we don’t. Instead we live in a world where assets are sold many times over and no one owns them (rehypotication). We also have made promises on the future are many times greater than the wealth actually available (pensions, credit..etc) and valuations based on stock buybacks rather than fundamentals.

The result.
We actually have less stuff than thought - rehypotication unwinds.
Valuations drop - stocks valued at $100 are actually evaporated to $40 or less

Then comes the deflation - which is actually a good and healthy part of the overall cycle but the imbalance has become so great that it will be devastating.
 Quoting: Anonymous Coward 78168058


Ah, thank you! I had to look up what “rehypotication” meant. So if someone can do that with wealth, why can’t a reverse rehypotication be done with debt?

Are you essentially saying that the world debt owed is as false as the assets are?
Tyrone Slothrop

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11/16/2019 08:28 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
I guess we need a better idea of assets. If all the IBM stock in the world is 500 million shares, at $100 a share. everyone total has what 50 billion dollars of "assets". If One person sells one share to another person at $98 a share, everybody total has lost a billion dollars in "assets".
I've gotten a lot of red for telling the truth and being right. Just sayin'
Anonymous Coward
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Netherlands
11/16/2019 08:28 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Serious question. The world is a closed system. Assets just don’t evaporate into space. So how can every single country on earth be in debt?

[link to en.m.wikipedia.org (secure)]

In a closed system, if I take a Euro from you, I have a Euro. It doesn’t go anywhere, unless I owe someone else a Euro. If I give it to them, THEY have a Euro. So if money and goods are leaving one country (leaving it in debt like the US is), shouldn’t another country be wealthy from receiving the goods? Even oil rich countries like UAE and Qatar are in debt.

How is it that every. Single. Country. In the world is in massive debt? One country should be massively wealthy if funds were taken from all the countries, right?

Can someone explain it to me?
 Quoting: Anonymous Coward 77545963


debt is infinite
Anonymous Coward
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11/16/2019 08:29 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Because for every dollar you put in the bank. The bank lends our $10. Then your account gets drained with interest and you put more money back in your account without ever fully paying off your debts and then they lend out $10 more dollars.
Anonymous Coward
User ID: 76172393
Slovakia
11/16/2019 08:30 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Serious question. The world is a closed system. Assets just don’t evaporate into space. So how can every single country on earth be in debt?

[link to en.m.wikipedia.org (secure)]

In a closed system, if I take a Euro from you, I have a Euro. It doesn’t go anywhere, unless I owe someone else a Euro. If I give it to them, THEY have a Euro. So if money and goods are leaving one country (leaving it in debt like the US is), shouldn’t another country be wealthy from receiving the goods? Even oil rich countries like UAE and Qatar are in debt.

How is it that every. Single. Country. In the world is in massive debt? One country should be massively wealthy if funds were taken from all the countries, right?

Can someone explain it to me?
 Quoting: Anonymous Coward 77545963


debt is infinite
 Quoting: Anonymous Coward 76150406


Serious question. The world is a closed system. Assets just don’t evaporate into space. So how can every single country on earth be in debt?

[link to en.m.wikipedia.org (secure)]

In a closed system, if I take a Euro from you, I have a Euro. It doesn’t go anywhere, unless I owe someone else a Euro. If I give it to them, THEY have a Euro. So if money and goods are leaving one country (leaving it in debt like the US is), shouldn’t another country be wealthy from receiving the goods? Even oil rich countries like UAE and Qatar are in debt.

How is it that every. Single. Country. In the world is in massive debt? One country should be massively wealthy if funds were taken from all the countries, right?

Can someone explain it to me?
 Quoting: Anonymous Coward 77545963


debt is infinite
 Quoting: Anonymous Coward 76150406


So is the hyperinflation when the ultimate bubble bursts.
Anonymous Coward
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United States
11/16/2019 08:30 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
wealth is not a closed system. All wealth comes from the earth. You can buy land and mine for silver and gold and create wealth and create more "money" for the system.

The paper money is fake and comes out of thin air. Only hard assets have value like land, gold and silver. You can even buy some small land with trees and carve wood sculpture from the tree wood and create wealth. TPTB want you to think its a closed system.
Festus Hoggbottom

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11/16/2019 08:30 AM

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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
It's pretty simple. Money flows.

You can actually watch it happen if you know how. Right now is 'risk on'. That means money is flowing mainly into the US Dollar and primarily out of Gold, Japanese Yen, and Swiss Franc. Others too, but these are the easiest to see.

When we shift to a 'risk off' environment (probably as a result of some bad news for the Dollar), the flow will reverse. There is money to be made both ways.
I did it. I did it on purpose. And I'll do it again.
Anonymous Coward
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11/16/2019 08:31 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
101

More of something there is....
The less value it has.

Money
Rats
Buffalo
People

Think about it......... You got it! Gratz
Anonymous Coward
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Slovakia
11/16/2019 08:31 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Credit is the leverage of assets unrealized...
 Quoting: BRIEF


The financial derivatives are the most funnies shell game.
Anonymous Coward
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11/16/2019 08:32 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Money is legitimately created (or more accurately value) when any raw material is worked and refined into a new more valuable state. Like taking a tree branch and carving it into a figurine. The figurine is worth more than the branch it started as. New dollars need to be released into the system to account for this creation of value. Likewise, dollars should be removed from the system if the opposite happens (something valuable is made less valuable).

Obviously this is pretty hard to track, and also doesnt account for value created that is less concrete, like a singer entertaining, or a financial advisor advising, or a teacher teaching. These types of value exist because it is believed that they propagate the creation of the concrete type of value by spreading knowledge or improving morale, etc.

Bottom line, it is not a close system because new wealth (and propagators of wealth) are constantly at work in the system.

It is complicated. Think about it.
Anonymous Coward (OP)
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United States
11/16/2019 08:34 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Thanks for the pin!!!
Anonymous Coward
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Slovakia
11/16/2019 08:35 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
Money is legitimately created (or more accurately value) when any raw material is worked and refined into a new more valuable state. Like taking a tree branch and carving it into a figurine. The figurine is worth more than the branch it started as. New dollars need to be released into the system to account for this creation of value. Likewise, dollars should be removed from the system if the opposite happens (something valuable is made less valuable).

Obviously this is pretty hard to track, and also doesnt account for value created that is less concrete, like a singer entertaining, or a financial advisor advising, or a teacher teaching. These types of value exist because it is believed that they propagate the creation of the concrete type of value by spreading knowledge or improving morale, etc.

Bottom line, it is not a close system because new wealth (and propagators of wealth) are constantly at work in the system.

It is complicated. Think about it.
 Quoting: Anonymous Coward 78129331


The U.S. have been printing funny money for decades, and exporting the hyperinflation into the whole world by the means of the petro dollar system and Wall Street cenral banking, after 100+ years the Reckoning is coming ...
Anonymous Coward
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11/16/2019 08:36 AM
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Re: Where on earth is the money going? The world is a closed system. If one country loses money, another should gain it
money is not just used to purchase things

it's a STORE of value.

the trillions they have, are for FUTURE purchasing power of your great great great grandchildren's servitude





GLP