Topic: Global Wave of Debt Is Largest, Fastest in 50 Years (Read 527 times)

Technological advancements and the industrial revolution 4.0 brought drastic changes in industry trends, where developments were no longer linear but exponential in nature. This revolution is a disturbing era of innovation, where this era is developing very rapidly, thus bringing the transformation of the labor market in a more dynamic direction that results in the transformation of industries by sector. This results in a change in business character, where there are some types of conventional jobs that are disappearing, but new types of jobs, skills, and expertise have also emerged.

The industrial revolution 4.0 can be a special threat to workers who do not have the skills to adapt to new types of work. Because every society undergoing this industrial revolution is not ready, they have to be confronted with a new system or job.

In the era of the industrial revolution 4.0 much human work could be replaced by robots or artificial intelligence. Recurring and memorizing work has begun to erode by the development of automation technology, robots and artificial intelligence. there are some human skills that are not easily replaced by machines such as empathy, creativity, and analytical expertise on complex problems. Therefore, to become a superior human resource in the current technological era, individuals need to hone this ability by continuing to take advantage of technological developments.

In the case of the head of engineering whose salary is smaller than a barista can be analyzed from the entity of the company and the ability of the individual. Jobs in the production department that are repetitive and memorize are very vulnerable to be replaced by robots, with the aim of producing cost efficiency. But it's different if you become an engineering at an offshore oil company, of course, the salary will be greater, because of the complexity of the problems and problem solving that might be faced. While the barista profession involves creativity, senses, aesthetics, and interactions with customers that cannot be duplicated by robots. Baristas in coffee shops are the key products produced that can attract consumers, so the salary is high.




For now, the contribution of labor (engineering) can affect the GDP of a country but without an increase in skills, it is impossible for a worker to continue to survive doing repetitive work that has great potential to be replaced by digitalization and automation in the future.

In the future, baristas can also be an influential factor for GDP if the government is seriously working on making the coffee shop icon a country and a culture of drinking coffee socialized en masse. So the totality government is working on starting from coffee plantations, drones to cultivate coffee, coffee garden water systems, coffee transportation modes, coffee packaging industry, civet coffee producers. Only from which side do you see.



To turn the wheels of the economy, citizens must make as many projects as possible. We take the example in the country of China, in Guangzhou, almost all the trees were installed with chips just to measure oxygen levels and other air data. It seems that it is not something very important when the project is run by the government because as long as it can turn the wheels of the economy, it is beneficial for the community and solving problems even though it looks unreasonable that the project will be financed by the Chinese Government.

In China, project-based money printing and business culture are supported by the government with easing regulations but the money is still carefully monitored and business preparations prepared from upstream to downstream.

Of course, I agree with you that Bitcoin is already a good alternative, even if the degree of risk is very high.  Nevertheless, it is necessary to take into account the fact that only certain people have access to Bitcoin, because most lack knowledge and a certain level of practical experience.  Almost 95% of the citizens of a particular country will have the results of their financial situation exactly as their governments allow them to have.  And given the current attitude of officials towards cryptocurrency, humanity will continue to suffer from unprofessional actions of the government and from their manipulations.

Only by zooming in on the global economic situation, everything is shrinking, and the debt continues to increase.



It is notable that now one of the best alternatives to global debt is Bitcoin, although some economists classify it as a high-risk investment, it is essential to have it today, as a protection measure. Adoption will quickly be a fact, knowing that it can be used as a possible refuge value, people will not hesitate for a second to do so.

Source: https://beincrypto.com/alternatives-bitcoin-becoming-necessary-world-debt-reaches-record-253-trillion/

Countries going back to gold backing is not something they can do anymore, they have abondened it so long ago that not many countries are at a level where they can get that much gold. They have printed money out of thin air for too long, think about what the USA government would have to do if that was tech case, they would have to get trillions of dollars worth of gold and that is not an easy task to achieve, there are few nations like china and Germany that can do something like that because they don't have huge deficits like the other nations.

Backing with bitcoin would be very difficult as well because the reality is price of bitcoin is volatile and unregulated and decentralized, meaning you can never have certain amount of bitcoin, it could go down or up and change your calculations

It seems to me that the existing problems with the economic downturn in almost every country were brewing by themselves, because we are starting to spend more money than we earn.  In times of technological progress, there was an increase in the productivity of any production and any business, which brought good profit and therefore each worker received the corresponding payment for his labor.  And today, for example, in my country, the chief engineer receives a salary 4 times less than a simple barista in a metropolitan cafe.  Based on this, the question arises: Who influenced the gross product of your country, engineer or barista?  This situation will spread and intensify throughout the world.  the state is being manipulated by all available opportunities and printing extra money, and therefore inflation will gobble up all citizens' incomes.  It seems to me that only cryptocurrency can fix these problems.

I'd agree with that. If that crypto would be tied to a resource, then it should be based on what the country currently does have, else it's really just speculating. Why peg it to a supposed amount of resource that is not even sure exist? The main reason people are thinking of backing currencies with metals like gold is that they are already tired of the current system where currencies are just traded around like stocks.

Every country has its own crisis at this moment. It looks like there is another recession hitting us harder than ever and I dont see any country is willing to stabilize it. USA has its own drama running with Iran and Impeachment, UK is busy in Brexit, China is busy in making disputes with its neighbors and Putin is busy in getting more powers. Sometimes I fear what will happen if all of the world thinks that we dont need a government anymore..!!!

I don't live in the US but my understanding is that these student loans are owed to the government, that the gov't already paid the universities, right? If the Democrats win and they do "write-off" these debts they'd probably increase taxation which I think is unfair for those that have already paid of their student loans since they're practically being made to pay for other's. Those of the irresponsible ones who took out money for useless courses like gender studies and end up babysitting dogs. 

Yes writing off the debts is not possible at the same time not applicable. Big corporations have a calculation of their debts, the areas that suffer are dealing with consumers. Consumers usually don’t paid their debts back. They are also the ones that mostly take debts as the method used for taking debt is very simple and easy. So, governments should surely find a way to deal both with consumers and students debt.

I think the problem is what kind of debt is being accumulated. Corporations take calculated risks before they get into debt so we can safely not think about those. The problem is consumer debt, which have a higher likelihood of not getting paid. They've made it extremely easy for people to take out loans. One person defaulting might not seem much but multiply that over the population and you have a problem.

I can't even imagine what happens if they decide to write-off all those student debts. We know debts don't simply get written-off, the government would find some other way to get that money back.

Stable coins are a win-win solution not only to overcome crypto volatility problems but also for the interests of a country that often feels scared by the decentralized bitcoin system. A stable coin whose gold collaterals should have a certain amount of gold is the same as the crypto that was made.

Gold reserves should be owned by the central bank in the form of gold bars or contractual rights, but there are Some countries' gold reserves are only calculated based on asset audits and are not already mined or have become gold bars. In accordance with the concept of a sovereign wealth fund whose principal is who has the gold, he is sovereign, far above the currency of any country.

Based on an audit of precious metal assets contained in the bowels of a country (not yet mined) the country issues securities (state securities). With state securities, the central bank can print 10x 100x money from securities. So the money create depends on the policies of each government.

If the government makes gold-backed cryptocurrency but it's not tied to the actual gold value as collateral, then this is not a cryptocurrency expected by their people.

I am pretty sure debt in big corporations increase as well and this is not just us that causes this. I mean sure avarage person has more debt right now compared to 50 years ago and sure we have been getting bigger and bigger inflation which results with our income to be bigger (only slightly) and of course our debt to be bigger (much bigger than increase in our salary) however considering companies are investing billions into stuff to make even more billions in return could be a problem as well.

Just recently amazon opened up places in 7 new nations, that must have caused them billions of dollars easily but eventually they are in 7 more nations now and that would result with a lot of profits in the long run, that kind of stuff increases debt but also increases future profits as well.

That's true but I think governments are more likely to go back to the gold standard (and claim they actually have the gold to back it up) than to adopt Bitcoin. Almost every government plan for their own crypto seems to insist on backing it with a physical asset, for example Venezuela's sham petrocrypto.

The most important is that with cryptocurrencies if you send them to your own cold or hardware wallet it belongs to you unless it is stolen). With buying/trading precious metals in many countries (unless you get it with much worse spread) you just get a confirmation that you are an owner of some ounces of eg. gold in a gold bar stored 1500 miles away from you.
When really needed you will have no access to such gold or it will be captured by authorities (as it already happened in the USA in 1933 with Executive Order 6102 by F.D.Roosevelt).

Bitcoin is now considered the most popular digital asset and also the easiest to trade. Besides, it also addresses the problem of inflation because its supply is limited so people cannot use it to waste like fiat money. That's its strong point and it is being traded a lot and being bought and held by many people to avoid being affected too much by the economic downturn. actually bitcoin can help people like us out of poverty if we buy and hold it until the economic crisis occurs.

It's the perfect recipe for failure.

The whole point of crypto is that you verify, and not trust. How can you verify that Brinks actually has enough Gold in its vaults to back up whatever Gold backed crypto? I don't want to trust on an "independent" entity doing the verification part and they then release a report that says they are backed. If I can't see that they are backed myself, their words hold no value.

Bitcoin is Bitcoin. You can verify everything easily and fast with how transparent this whole system is. Why go back to something we try to get rid of?

I think the most recent example for this is what China is doing to other countries on what they so call "debt trap". The Chinese government will loan out money to countries they know that wouldn't be able to pay so when they default to that loan they will control the assets they have as collateral. This is how countries like China are taking advantage of other countries who are short in money and they are just losing more when their real aim is to just have a stable economy.

Global debt is growing. Why do you think? Because the production value is falling. Inflation-related measures will be taken. That's a big problem. We won't be able to stop it if it keeps making money from it all the time. What is really valuable is production. Production labor should have more money.

The government usually looks at the debt ratio of total GDP to measure debt in a safe or crisis position, debt limit in unsecured conditions is 60% of total GDP. But I think the government should try to look at things from a different angle.

In 1998 Indonesia's debt ratio was also at a safe point, only when the value of the rupiah against the dollar suddenly plummeted. Indonesia failed to pay off its foreign debt. As a result, Indonesia has been paralyzed and has a monetary crisis. So learning from Indonesia's case study of debt ratios or data on paper cannot guarantee that a country's debt is safe especially if the foreign debt is owed.

Debt in the form of foreign direct investment used for government infrastructure projects, state-owned enterprise projects, and the private sector, is very dangerous for a country because of the potential for foreign exchange losses.

Well the banks do have a back-up plan. It's called government bailout. 


Or maybe use the profits from bitcoins to buy gold? Yes I believe crypto is the future but so far gold is still a very trusted asset, one that people fall back to in times of uncertainty. I doubt it'll ever really make profit, it's just for safekeeping since humans seem to find it valuable.

When people talk about backing currencies, they think of backing it with gold (like it used to), not crypto. Or in some cases, crypto backed by gold.