So if country A owes Country B $1B and country B owes Country C $1B and country C owes Country A $1B can’t we all just agree to erase that $3B in debt?
This could be an interesting subject to research. Tracing just how much of the world’s debt can be wiped based on debt loops.
One problem you’ll run into is debt priority; essentially who your invalidated debt should be paid to before someone else. In theory you really wouldn’t run into too much of this but small sums of money have started greater wars.
One other issue is that in reality, debt is a good thing to hold over others for political power. There is money to be earned from interest and there is also a credit history in holding debt with a nation you are friendly with. Debt for individuals is bad. But debt for countries is a tool for all parties involved to benefit from.
So if country A owes Country B $1B and country B owes Country C $1B and country C owes Country A $1B can’t we all just agree to erase that $3B in debt?
Better to pay it with a credit card so we can get the points.
This could be an interesting subject to research. Tracing just how much of the world’s debt can be wiped based on debt loops.
One problem you’ll run into is debt priority; essentially who your invalidated debt should be paid to before someone else. In theory you really wouldn’t run into too much of this but small sums of money have started greater wars.
One other issue is that in reality, debt is a good thing to hold over others for political power. There is money to be earned from interest and there is also a credit history in holding debt with a nation you are friendly with. Debt for individuals is bad. But debt for countries is a tool for all parties involved to benefit from.
Just spliit.app that shit