Topic: World debt and currency reset (Read 752 times)

It looks possible on paper. But in reality, it is improbable. Government can't just wipe off debts or hit the restart button. The ones who wants this sort of restart are the debtors. And if you wipe off another country's debt, you might not be helping the country. You will be sending the information that they can keep owing until they are asked not to pay back.Every debt is paid one way or the other

  But debt-wise, that is possible. Some countries implement what is called a debt forgiveness. Usually this happens when the owner of the money which is in this case the government finds the debt of the person or the state too high to pay off based on his/its  economic status, or as an incentive for paying off a major debt if you have multiple debts to pay. That being said, it happens. But not quite frequent.

Government can't just wipe all existing debt for if they do, their currency, financial market, stock market and whole economy will crash. There are no reset button for debt unless it is paid with all its due. If you thought that removing all debt will elevate your social and economic status will lead to a better world, think again.

I agree, and it seems that financial stability between the countries are much more complicated than what we thought. Analyzing the transactions between countries debt is hard to understand. The whole world runs on money, for now, all what we can do is to be aware about the financial trends around the globe and focus on our own investments or money.

There is a question that no one seems to ask: but if the whole known world (USA, China, Russia, Europe, etc.) is in debt, and this debt rises more and more, then who the hell is the creditor?
Who is waiting to be refunded?
There is something very strange about all this ...

World debt leads to financial crisis, that happened many times in the past. Financial assets lose a large part of their value, that creates a chaos. Expert speculates when we will hit the next huge global crisis, pessimists saying this year, US will enter it's next recession and that will lead to crash. Some saying next year, or there will be no crisis. It's on each of us to read news and to make some conclusions, personal I believe that fiat will get into some huge crisis in next 5 years, more or less, which will benefit crypto of course.
About currency reset, I don't believe that can be an option. Global economy is a mess, we don't even know who have money and where, we don't know connections, and to everyone agrees on some currency reset, debt reset, it's impossible! Nobody will forgive debt to enemy, and across the world there are many countries who have many enemies.

No, won't happen. Governments may forgive some kinds of debts but like a loanshark, they'll just take it out of the other users by increasing taxes. As for a government allowing its own currency to crash and get replaced by a different fiat, they won't do it voluntarily.

Look at Venezuela and Zimbabwe. The citizens have started using USD and in the latter's case, it all but supplanted the local currency. Did Zim's financial responsibilities got wiped clean? No.

no, that won't happen. debt remains. although currency changes. because everything has notes. for example all currencies of each country are replaced with bitcoin. it will not erase debt. but disrupting the world economy is true. especially large economies such as the US, EUROPE, etc. because we know that this country is the economic leader in the world.

Switching from one fiat currency to another fiat means coming out of the tiger's mouth into the crocodile's mouth. The FIAT money system is what causes debt inflation at this time. So the culprit is the existence of fiat money itself. Start reviewing and making concrete actions to simulate the use of currencies with intrinsic value.

So to resolve global debt the way is to stop the practice of debt by eliminating banks that apply interest rates.

The practice of debt relief with various mechanisms has already taken place in this world, but if what is meant is "back to zero" then the negotiations will be very heavy because other countries' debt means foreign exchange for other countries. "back to zero" also means instability for a country whose foreign exchange reserves are in the form of government bonds.

Here are some mechanisms for debt cancellation

- Basic Toronto, the choice of conventional assistance in the form of; cancellation of the loan to one-third of the loan value, a reduction in interest on all loan volumes, extension of the repayment period to 25 years
- Brady Plan, by eliminating part of the debt, but the remaining debt is guaranteed by the IMF or the World Bank, as long as it follows the required adjustment programs.
- Debt swap for capital (debt for equity swap)
- Debt exchange for certain humanitarian or environmental programs, such as (debt for nature swap, debt for health)

The burden of the global debt crisis should be shared evenly among all parties not just charged to developing countries or poor countries)



Cryptocurrency can indeed shift the fiat money system with all its problems. But learning from previous fiat currency failures, shouldn't we rely on crypto on real gold.

Cashless transactions, although efficient, clearly cause huge holes due to the practice of creating money, making it more frustrating that our assets are only in the form of writings on a computer or system without real guarantees that the amount is appropriate.

Blockchain technology can be a bridge to close the hole and bring transparency to the world economy. So that even distribution and welfare of the economy can be felt by everyone.

agreements between nations can help in transacting across countries, and this certainly can develop business in the import and export sector. without the opportunity, I think the crypto workspace seems limited, but I think it still takes a long time to be able to see it

It is possible, that is, if all the government will agree on that. It can be possible to have currency reset and just forget about the debts of everyone, of course it depends on every country, but the nature of a human, we are all greedy and nothing can change that fact. We all want the things we did will be paid off and I think that will be the problem. Some countries may agree to have this currency reset most especially those with big amount of debts but of course the problem will be the creditor. Will they agree on that? Well that's the question that should be answered.

That's a rather optimistic view of the OP. Only way that will happen is if there was a complete GLOBAL societal collapse. Yup, just your country collapsing doesn't mean foreign governments will write your debt away. And even if they "do" in practice they'll still make you pay for it by asking to give them so and so rights etc.

So for those thinking their student loans are gonna be forgiven if they elect so-and-so into office, go face a mirror and slap your face till it turns red then do the same to the other cheek. What you and your country will go through to "forgive" that debt will feel x100 worse than that for whatever number of years you'll have left alive.


Hard to explain but this fucked Greece multiple times in the past. Thing is, the debt is never truly forgiven, the creditors will always try to find a way to take their money back.

We can. It's actually possible to have a currency reset. Take a look at the mountain of debt we're all stuck into and think whether they can or not. At this point there's literally no way we can recover from the deep debt hole we are into.


What makes you think they fear it wouldn't work? It would, but the problem is the following: a reset of the global debt is needed for this to really do some change in the world economy. A global debt erase means everyone is free from debts, which would be unfair for a lot of the population (those who are not in debt right now would be in disadvantage, because those in debt will be favored).

Most countries don't necessarily need to agree with each other to proceed with a reset. As soon as the reset is processed in such a way that every leader has a benefit from it, it could easily happen. A bigger problem would probably be countries like North Korea, but I doubt they'd refuse a good offer. If they want it to happen, they have all the resources and people they need to do it and nothing would stop them.

A currency reset would most likely not mean a RESET to 0, but swapping the $, €, £ and all the other currencies with a new one that could track the progress and all our funds in a way easier manner. A reset to 0 is too harsh, they have to do a smooth transition and I believe it'll happen as soon as the national cryptocurrencies launch. It'll be a reset disguised in a currency swap. We're slowly going cashless if you think about it and look around. Cash transactions are being limited as much as possible, and cash transactions are inversely proportional with the control of our funds.

They dont do that, there's an agreement where banks set some rules to whenever if the person failed to pay the debt in full. They will take away their property and everything you own.

What's more horrific is that they will inflate the currency by printing more paper money to drown you in debt, so you have to spend your whole life paying for those debts.

Unless if a global financial crisis happens which the banks are doing where they're exceeding the US debt mortgage to a staggering 15.8 trillion. We may see a recession and reset to all the debts.

Hey, no one can say what they'll do but while a reset makes logical sense there's a lot of emotion and ego in these decisions. Most leaders don't want to be in the chair for such an event because they fear it won't work. Also, a lot of governments owe other governments, so it would require multiple or all major governments agreeing to forgive the debt to each other, which also agrees to give up revenue from the interest earned on loans granted to other countries.

We should see some real action come out of this or else governments will have a much bigger problem on their hand. Ignoring the issue is not the answer!

Haha! You are joking right? The whole financial system is based on Debt itself. The richest countries have more debts and a better GDP while the poor countries have lesser debts with bad GDP. There actually is no need to restart the situation because there is no situation at all. Internal debt is just a myth which actually would never be repaid so there technically is just thin air. Only debt prevelant is International Debt which too is more or less not being repaid by most of the countries as of now but that is a true determinant of who would be the top leader in the World. Restarting the whole system won't happen because that would require finishing the value of fiat currency but once that happens there would be a complete riot situation in the world as people would not know where to go.

Making cost of $100 note is not $100 so you are assuming things wrong.We can never get away from debt until fiat stays because inflation will never stops and government also not going to stop getting loans for the country's betterment.
No one really knows that banks printing based on these formula? Then why inflation rate hits 6% if banks are not allowed to print more than 4%.

If you are aware that the printing money does not mean that the bank or government can print money without any repercussion, in normal circumstance they would print 4% of the total gross domestic Production and if the policy makers or government is dumb enough to print the currency without any limits, then you will find situations you saw in Venezuela and Zimbabwe and not everyone is attracted to decentralize currency.

Fiat currency has value the paper has value When You are in debt to pay debt You need that paper! 
Without that paper You Can't serve Ur debt!


So how Come that this paper has no value?? 
I Think You are missing here something
Fiat currency has biggest value Still!

Actually money has no value,which was just made of paper but governments promises us it has the value but it will become lesser and lesser when the debt increases so bigger debt is good for banks not for an economy.Exactly if people have debt they will keep working hard to repay it but they doesn't realize the value of money they were making reduces for their every salary period.